M&A IN RETAIL & CONSUMER IN FRANCE - 2017 BACK TO EUROPE! - PWC
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M&A in Retail & Consumer in France - 2017 Back to Europe!
2 PwC
2017 Highlights
The following report takes a look at the Retail & Consumer market trends as illustrated through the sector’s
M&A activity. The deals taken into account were completed from 1 January 2017 to 31 December 2017, and
involved at least one French player - whether on the buy or the sell side.
Consumer behaviour is driving companies to products and associated services in this space have been
reassess their portfolios and investment a focus of M&A in 2017.
strategies, by expanding outside of their typical
capabilities and going into adjacent sectors to get closer As a result of the above, the Consumer Markets sector
to consumers’ requirements. witnessed a significant deals level in 2017 with total deal
value of c.€40 billion meaning a 176% increase
Competition and cost advantage are also fueling from 2016, the decrease in number of deals being largely
deal activity as trends shift away from pure traditional compensated by higher deal value. This evolution was
retail towards online or digital channels with the anchored by strong mega-deal activity (exceeding
associated innovative infrastructure and the delivery €1billion) in 2017 with 6 mega-deals amounting to
model needed to support these new channels and €35.5 billion, compared with 4 megadeals in 2016.
capabilities. 40 transactions exceeded €100m.
This resulted in a wave of format changes which has Consumer Markets remain the most active sector for
forced many retailers to invest in technology at a time private equity investors even if PE deal proportion
when sales trends are low. Franchise businesses and reduced slightly in 2017 compared to corporate deals,
market place concepts continue to be attractive given illustrating a competing environment for quality assets.
their ability to expand and achieve cost leverage. Overall high valuation price illustrates this fierce
completion.
To follow pace with consumer expectations, food
players as well as retailers are looking to increase According to Argos Soditic index, EV/EBITDA , mid
their position on the health, organic, and market transaction (€15 to 500 million) in Europe
dietary segments, with a wish to portray a recorded on average 9.6x EBITDA, a peak over the last
responsible and secure/safe image. Innovation in 13 years, even higher than 2007’s recorded
performance.
Increase of the index to its highest ever level
10 x
9,5 x
9,1 x 9,1 x 9,2 x
9x 9,0 x
8,4 x 8,4 x 8,3 x
8,3 x 8,4 x 8,6 x
8,1 x 8,5 x 8,5 x 8,5 x
8x 7,7 x 7,8 x
7,8 x 7,7 x 7,9 x
7,5 x 7,4 x 7,2 x
7,0 x
7x 7,0 x
6,6 x 6,7 x
6,2 x
6x 6,3 x
6,1 x
Median multiple EV/EBITDA over last 6 months
5,7 x Source: Argos Mid-Market Index / Epsilon Research
5x
S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 S1 S2 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
PwC 3
At a glance, 2017 vs. 2016
Number of deals by segment
Food (agro, Wine & Spirits Clothing
processing, retail)
67 vs. 96 25 vs. 23 51 vs. 68
Personal Care & Home goods, Other specialists
Cosmetics Appliances &
Electricals
21 vs. 32 28 vs. 50 51 vs. 38
International features
Domestic deals Inbound deals Outbound deals
164 44 35
vs. 207 vs. 50 vs. 46
Number of deals where deal value or target revenue is …
> €100m €10-100m < €10m
40 101 83
vs. 34 vs. 34 vs. 109
Number of deals by investor type
138 103
Corporate Private Equity
vs. 169 vs. 134
42%
58%
4 PwC
In volume In value
-20%
243 c.€40bn +176%
45 800
40 700
35
600
30 18,6
6,0 500
€ in billions
Volume (#)
25
400
20 6,4
34,3 300
15
26,7 4,0
22,4 200
10 20,6 22,1
17,7 18,1 15,6
13,1 12,8 13,4 13,6 100
5 14,8
0 0
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Value LVMH/Hermès L'Oréal/Nestlé BIG C/Casino LVMH/Dior Volume
The lower volume of deals in 2017 volume has been largely compensated by higher transaction values
PwC Sources: Zephyr, Capital Finance, Merger Market, PwC analysis 5
Food production and distribution: health
and convenience, a winning combination
Private Equity also surfed the wave:
Food remains the most active segment
M&A-wise, with 67 deals struck over 2017. • Unigrains, who proved to be quite active this year,
After numerous outbound deals in Europe acquired 30% of Nutrisens, a dietary requirements
and emerging countries notably in the agro food specialist known for its ready made meals for the
sub-sector last year, 2017 was rather elderly. Alongside the historical majority shareholder
marked by a shift to domestic deals with Evolem, this investment should further support
food transformation being the most active Nutrisens’ development and expansion abroad.
area.
• Similarly, Cerea Partenaire (subsidiary of Unigrains)
struck a deal with Organic Alliance, and took over
“Food” remained, this year again the most Naxicap Partners’ majority stake, to secure Pronatura
dynamic segment in terms of M&A activity in & Vitafrais’ leadership in the distribution of organic
both the Retail and Consumer Goods sectors. fruits & vegetables.
Organic and Health segments Premiumisation and “savoir faire à la
française”
Interestingly, M&A in the health and convenience
sector remains very active, supported by • Challenged by vegetarian/ vegan trends as well as
consumers’ increasing preoccupation for secure requests for further food traceability, meat players
and healthy foods, service and proximity. actively pursued a premiumisation strategy. Agrial
acquired the authentic Charcuterie Brient in Britanny,
• Danone has for instance confirmed its leadership while Euralis acquired the high-end meat producer
position in the organic dairy production by completing Teyssier. Through these deals, both players aim at
its acquisition of WhiteWave Food Co., a high-end reinforcing their respective portfolios and securing
milk and dairy alternatives manufacturer in the US, outlets for the meat producers in their cooperative.
leader in the organic segment.
• On the other hand Arcady, the gourmet food player
• Lactalis pursued its expansion strategy in the US by with its brands Angelina, Astara and Artisan de la
acquiring Stonyfield, which Danone had to sell to Truffe, got further backing from PE investor
comply with American competition authorities. The Extendam to support the diffusion of its French
French dairy giant, on a smaller scale, further savoir-faire abroad.
quenched its thirst by taking control over Omira, a
German dairy manufacturer, as well as the Californian Transformed products & ready-made on
Karoun (Feta, Greek yogurts and Kefir specialist). the rise
Numerous smaller deals reflect a similar desire to Consumers have in fact proven year after year that they
expand in more healthy market segments. care and value brands who provide them with not only
quality products, but also convenient ones.
• Alimentation & Santé (Ebro Food’s subsidiary), for Whether it is through pre-cooked meals or pre-
instance, sealed a €15 million deal with Vegetalia, one packaged ingredients, delivery services or
of Spain’s organic food pioneers; ready-to-go items, the demand is flying high (off
shelves!).
• Triballat Noyal (€274 million sales), a French family
owned specialist in organic products acquired a majority
in Cereco, a €40 million sales family business specialized
in organic cereals, in order to widen its product portfolio
and cover meals from ‘breakfast to diner’.
6 PwC
Food players are also hungry for a full and ready-to-eat
meal.
• In that sense, Bonduelle sealed a €379 million This alliance with Alibaba stems from our
transforming deal with US-based Ready Pac, shared vision for the future of commerce in China.
William Saurin was swallowed by Cofigeo and Bringing together the leaders of in-store retail and
Arterris, while Gozoki secured its position by of online retail will allow us to serve hundreds of
acquiring another ready-meal specialist: millions of Chinese consumers a fully integrated,
Société Collet.
world-class shopping experience.”
• The Belgian player Ter Beke acquired the remaining
67% stake in Stefano Toselli, the French pasta meals Wilhelm Hubner,
manufacturer, with the hope of creating operational Chief Executive Officer of Auchan Retail.
synergies and expand its sales reach.
• With the firm ambition to further grow in France
and Europe, the Japanese giant Ajinomoto secured a
3rd site in France with the acquisition of Labeyrie
Traiteur Surgelés. The deal should allow Ajinomoto
to surf on the current Asian-inspired meals trend
and develop new products and recipes to seduce
local taste buds.
• With the objective to consolidate its local footprint in
the segment, Agrial completed the acquisition of UK-
based My Fresh Prepared Produce.
• The bakery / snack market was also very active,
welcoming new actors such as Mix Buffet or
Novepan (the result of Grain D’Or and Lubrano et
Fils’ merger). Cerelia on the other hand took control
over English Bay Batter, the cookies specialist, in
order to strengthen its positioning in North America.
Similarly, Les Fromentiers de France took a bite of
the bakery/snacking market by acquiring D’Aucy’s
snack business Cobral.
Food retail takes phygital strides towards the
convergence of models.
Internet giant Alibaba made a bold move and
strengthened its positioning by securing online and
offline channels as it invested close to € 2bn to acquire
the 36% stake (formerly owned by Ruentex) in SunArt,
Auchan’s leading Chinese hypermarkets chain.
PwC 7
Deal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
Food Processing
Danone completed its largest deal in a
WHITEWAVE
Dairy alternative decade by acquiring WhiteWhave, a US
FOODS Corporate
US products DANONE SA FR maker of upmarket natural and healthy 11 787 2 846
COMPANY, (100%)
manufacturer foods. It will make Danone the world’s
THE
biggest producer of organic dairy products
Lactalis completes its acquisition of
Stonyfield from its main competitor Danone.
STONYFIELD Organic yogurt Corporate
US/FR GROUPE LACTALIS SA FR Struck for 740 €M, this deals makes it 740 334
FARM INC. manufacturer (100%)
amongst 2017's largest and brings Lactalis
to the forefront of the food industry.
French canned-vegetable company
READY PAC Bonduelle has acquired a privately held
Ready-made salads Corporate
PRODUCE US BONDUELLE SA FR California producer of fresh prepared salads 379 740
manufacturer (100%)
INC. Ready Pac, to strengthen its position in the
US market
German natural ingredients group Doehler
France-based
HERB'S strengthened its healthy food segment by
natural health >10M€ -
INTERNATION FR DOEHLER GROUP SE DE Corporate acquiring Herb's International Service, a 25
ingredients producer
PwC 9
Wine & spirit: harvesting authenticity
The number of “Domestic” deals in the • Bouygues brothers’ family office made its 3rd
Wines and Spirits segment is a key feature acquisition in vineyards with Clos Rougeard, a
in 2017’s concentrating market. 15 deals French-based organic winemaker.
involved French acquirers and targets. Only
5 cross-border deals however were Ways of securing international distribution
completed by large French players, who markets remain a strong M&A driver.
grabbed selected assets in the US and the
Caribbean. • InVivo pursues its €1 billion InVivo Wine ambition.
Created in 2015, with the acquisition of a Bordeaux
trading company and a stake in wine cooperative
The search for premium brands remains highly Vinadeis, InVivo Wine added a substantial asset this
scrutinized. year with Dutch trader Baarsma Wine, which
generates €210 million annual revenues and opens
• Bollinger grew its stake in Delamain, a super- new doors for export markets.
premium cognac house.
• Cognac Ferrand goes to the roots with West Indies
• LVMH acquired Colgin Cellars, an iconic Napa Rum Distillery, an historic Barbadian rum business,
Valley wine. gaining access to Barbados and Jamaican sourcing
for Plantation.
• Private Swiss Investor, Dona Bertarelli’s family
office extended her luxury portfolio of investments It’s the proximity to the customer, product
with The Wine Merchant, a French wine trading innovation and the new consumption habits that
company. have significantly catalysed interest this year.
As a matter of fact, quite a few innovative concepts have
• The Gardinier brothers sold their Château Phélan- been brought up on stage such as Petit Ballon: an online
Ségur to a private investor: Philippe Van de Vyere. subscription based player will benefit from synergies
The transaction is said to allow the French brothers from its new shareholder Vente-Privee.com, but also
to further invest in their upscale gastronomy and Kol (pure mobile, home delivery) also in early stage of
hospitality activity, while allowing the Belgian development, raising funds to roll out its concept in
investor to savor French spirits. France and the UK.
• The year’s biggest deal however, remained the 80%
stakes sale of Château Troplong-Mondot to SCOR.
The brand is recognized as one of Saint-Emilion’s
most important producers, and was sold along with
its ‘chambres d’hôtes’ and Michelin starred
restaurant for over €170 million.
Beyond classic consolidation, acquirers were
particularly attracted by craft and organic
brands.
• Pernod Ricard invested in US-based craft liquor
producer Smooth Ambler Spirits.
• Remy Cointreau invested in Domaine des Hautes
Glaces, the “Alpine farm distillery”, an organic single
malt whisky producer (6 months only after the
Westland acquisition).
10 PwCDeal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
Producers
The Valette-Pariente family sold its Château
CHATEAU France-based Troplong-Mondot, one of Saint-Emilion's
Corporate
MONDOT FR company that SCOR SE FR biggest producers to the insurer SCOR SE 178 -
(80%)
S.A.S operates a vineyard along with the attached restaurant and
‘chambres d’hôtes’
The Guigal family expanded its regional
France-based presence and influence through a
DOMAINE DE Corporate
FR producer of red and E. GUIGAL SAS FR transaction with Assurances Mutuelles 50 -
NALYS (Majority)
white wines Agricoles Groupama, owner of Domaine du
Nalys.
The Gardinier brothers completed a deal
with Belgian investor Philippe Van de Vyere.
Through the cession of their Château
CHATEAU PHILIPPE VAN DE
France-based PE Phélan Ségur, the brothers aim to focus
PHELAN FR VYVERE (PRIVATE BE 25 -
vineyard (Majority) investments on their upscale gastronomy
SEGUR INVESTOR)
and hospitality activity (Taillevent Paris,
Relais & Châteaux rémois Les Crayères,
Comptoir du caviar)
WEST INDIES
Cognac Ferrand completed its first
RUM COGNAC FERRAND Corporate
BB* Rum producer FR acquisition abroad through Barbadian rum 23 -
DISTILLERY SASU (100%)
producer West Indies Rum Distillery.
LTD
CHATEAU DE Terrena's subsidiary Ackerman acquired the
France-based Corporate
SANCERRE FR ACKERMAN SA FR premium France-based vineyard Château 21 4
vineyard (Majority)
WINERY de Sancerre to support its export strategy.
Family-owned Moët Hennessy enters Napa Valley-based
COLGIN Corporate
US Napa-Valley based MOET HENESSY FR and premium wine producer Colgin Cellars' - 60
CELLARS (Majority)
wine producer capital by acquiring 60% of its stakes
Retailers & Wholesalers
InVivo acquired wine distributor Baarsma
BAARSMA Dutch wine Corporate
NL INVIVO INVEST FR Wine, to extend its reach on the Northern - 210
WINE wholesaler (100%)
European market.
The high-end spirits promoter and
distributor Dugas welcomes British
France-based
Equistone Partners Europe as its majority
SOCIETE promoter and EQUISTONE PARTNERS PE
FR UK shareholder. Through this transaction, - 50
DUGAS SAS exclusive distributor EUROPE LIMITED (Majority)
Dugas seeks to gain new means of
of high-end spirits
expansion, innovation and partnership
opportunities
After acquiring vineyards, Jacky Lorenzetti
L D. VINS FR JACKY LORENZETTI FR PE invested in wine merchant L. D. Vins ( with - 50
3/4 of sales being export)
THE WINE DONA BERTARELLI / Family A Swiss Family Office acquired the Wine
France-based wine
MERCHANT FR YANN GUICHARD / YANN CH Office Merchant, French wine trading company, to - 40
trading company
SA BORGSTEDT (100%) diversify its luxury portfolio of investments.
PwC Sources: Zephyr, Capital Finance, Merger Market, PwC analysis 11Home Goods, Appliances & Electricals:
Supplying in-house?
Interest in wholesale, BtoB, omnichannel
M&A in the Home Goods, Appliances & players remained a key M&A trend.
Electricals segment has witnessed a
significant slowdown, with 28 deals struck • Polish kitchen-equipment specialist Amica for
in 2017, versus 50 over 2016. instance, acquired a majority in household
appliances wholesaler SIDEME.
Although some US and European actors have taken the • LDLC on the other hand, further pursued its IT
opportunity to grab a few assets in France, when equipment omnichannel and BtoB consolidation
looking at all 28 deals, it is clear to note that domestic with the acquisition of BIMP, a key high-tech and
deals were predominant, with 16 French acquirors Apple products reseller that caters to professional
of French targets. Overall, the required and educational segments as well as consumers.
concentration of the French market continued but at a
slower pace. • Similarly, US iRobot Corporation (known for its
Roomba robot vacuum cleaner) acquired its
• One of the major moves in second HY2017, was European distributor Robopolis for over €120
Ceconomy becoming the largest shareholder of Fnac million, making it the segment’s second biggest deal
Darty in acquiring the 24% stake from Artémis for in size.
€452m, as part of their strategy to become the
leading European platform for consumer electronics- The continuous sought for synergies was this
related businesses, brands and concepts. year again an M&A driver in the Home Goods &
Appliances segment.
• Maisons du Monde was the highest value operation
and the only significant “pure retail” deal in the • Bunzl PLC (the UK international distribution and
segment, with Bain Capital divesting in 2017 its outsourcing Group) for instance proceeded in
remaining 31,2% shares, after the IPO of the group acquiring three companies, namely Generale
in 2016. Collectivités, Comptoir de Bretagne and Hedis
Group to further expand their existing cleaning &
• Needless to say, it was a busy year for Xavier Marie hygiene operations in France.
(founder of Maisons du Monde) as he also gained
majority in Le Petit Souk (children furniture store • In the same context, Tellier Gobbel & CIE took over
retailer) through his investment holding Marco Polo, Bron Coucke, and Cafom took over Sia Home Brand
and announced further acquisition plans to pursue to complement the activities of its subsidiary
his expansion strategy. Habitat.
This year also registers in a broader premiumisation Other investments in the sector are rather
trend identified in the Home Goods segment, diversified but mainly revolve around well-
especially with regards to design and being at home such as comfortable bathroom
decoration. solutions, kitchen utensils and exterior lighting.
• Conforama acquired the premium bed manufacturer
Vivali - also known as Mon Lit et Moi - while
Manufacturière Française de Bougies along with
Roger Pradier should significantly benefit from new
private equity investors whose knowledge of French
‘savoir-faire’ and luxury should boost both
companies’ development.
• Similarly, Orvema and Lampe Berger welcomed new
shareholders (PE) so as to further spread their scents.
12 PwCDeal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
Brands & Manufacturers
After the Chinese group Gangtai's
FORTUNE FOUNTAIN PE acquisition of jewellery brand Buccellati in
BACCARAT FR Crystal specialist CN 185 148
CAPITAL (FFC) (88,8%) 2016, it's FFC's turn to buy French luxury
crystal maker Baccarat from L Catterton
Luxury crystal & Maison Lalique received €15m from Family
TAMER GROUP / FAMILY PE
LALIQUE FR decorations SA offices to support international growth, 15 125
OFFICES (Minority)
manufacturer especially in Asia (currently 20% of activity).
Holding company of BRIDGEPOINT
Bridegpoint has raised its shares in Peek-a-
Béaba, baby DEVELOPMENT PE
PEEK-A-BOO FR UK Boo to a majority stake though a €10 m 10 48
products CAPITAL / INDIGO (Majority)
deal, after its first investment in 2010.
manufacturer CAPITAL
The Polish kitchen-equipment specialist
Household (€650m) acquired all of the household
Corporate
SIDEME SA FR appliances AMICA SA PL appliances retailer SIDEME's shares, hence 4 81
(61%)
wholesaler buying off those owned by Electrolux (39%)
and Crosslee (22%)
PMH (Parisot group), a home furniture
manufacturer, has been acquired by its
Furniture Corporate former subsidiaries group (P3G Industries)
PMH FR P3G INDUSTRIES FR - 190
manufacturer (100%) to reach critical mass (now a top-ten player
in Europe with a combined turnover of
€290m)
The investment fund Argos Soditic acquired
LAMPE Home fragrances & ARGOS SODITIC / PE a majority stake in Lampe Berger, the home
FR CH - 50
BERGER lamps specialist MANAGERS (90%) fragrance lamps manufacturer. The SME
plans to invest in R&D and Sales
Retailers & Wholesalers
Ceconomy becomes the largest shareholder
of Fnac Darty in acquiring the 24% stake
from Artémis for €452m. First strategic
METRO GROUP Corporate
FNAC-DARTY FR DE move as an independent company 452 7 400
(CECONOMY) (Minority)
delivering on its ambition to further
strengthen its position as the leading
European Consumer Electronics platform.
After the IPO in 2016, Bain Capital finally
MAISONS DU Furniture & sold its remaining 31,2% stake in Maisons
FR PUBLIC n.a PE 400 882
MONDE SAS Houseware retailer du Monde, one of France's major furniture
and houseware retailer
ROBOPOLIS iRobot completed the acquisition of a
SAS France-based majority stake in Robopolis in order to raise
Corporate
(EUROPEAN FR retailer of consumer IROBOT CORPORATION US its control over its sales, marketing, CRM 121 117
(Majority)
DISTRIBUTOR robotic products and distribution as Robopolis represents
OF IROBOT) 50% of its Europe and MENA sales.
GENERAL ATLANTIC
France-based e- LLC / PARTECH Manomano raised €60 m in a fundraising
PE
MANOMANO FR retailer of gardening VENTURES / PITON FR/US led by General Atlantic in order to 60 89
(Majority)
and DIY products CAPITAL LLP / consolidate its presence in Europe.
BPIFRANCE SA
NAXICAP PARTNERS
Naxicap acquired Findis, the electricals &
OUEST CROISSANCE /
B2B/B2C Home- PE home equipments wholesaler from Activa
FINDIS FR SODERO GESTION / FR - 300
equipment retailer (Majority) Capital, Capzanine, EPF Partners &
BPIFRANCE/ SG
Quilvest Private Equity
CAPITAL PARTENAIRES
GROUPE
Holding specialized
HEDIS / Bunzl made the acquisition of three
in sale and
GENERALE companies: Generale Collectivites,
distribution of
COLLECTIVI- Corporate Comptoir de Bretagne and Heidis Group to
FR cleaning products BUNZL PLC UK - 155
TES/ (Majority) consolidate product lines. This was part of a
/ Catering
COMPTOIRE large external development strategy of the
equipment &
DE company costing over €600m in 2017
tableware distributor
BRETAGNE
PwC Sources: Zephyr, Capital Finance, Merger Market, PwC analysis 13Fashion & Accessories: through thick
and thin
to Carrefour early 2018 under financial liquidity
Groupe Arnault invested to rationalise its pressure after the announcement of the accounting
the group structure: increased its fraud of its Steinhoff holding company. Such move
ownership in Christian Dior SE for €12bn allows Carrefour to continue building its omnichannel
when LVMH acquired full control of ecosystem in its announced accelerated digital
transformation plan. Showroomprivé itself, extends
Christian Dior Couture for a further
its category coverage with Beauté Privée.
€6.5bn, the largest operation of the year!
But the fortunes of players in this segment
Defensive moves and distress situations across
are very contrasted, to say the least, as segments
illustrated in this year’s M&A trends.
• Value players Tati and Mim in financial difficulties,
were taken over by fellow retailers GiFi and Tally
• Out of the 51 deals struck over the 2017 period, one Weijl. In the same segment, Swiss value fashion
quarter were performed in defensive or distress retailer Yendi did not find new investors and was put
situations. In parallel, rising new stars receive backing in bankruptcy procedure earlier this year.
from investors. Private Equities remain very active,
playing a part in half of the deal activity. • Vivarte pursued its repositioning and associated
divestment strategy with the Pataugas brand going to
• A large majority of M&A operations in this segment Colis Privé founders and shoe manufacturing site CVC
were strictly domestic deals (33 out of 51), with little to German restructuring player Hanse. Last July,
outbound investment and few foreign investors. Kookai was taken over by its Australian licensee Magi
Entreprise “to allow for the brand to fully exploit its
Omnichannel investments go both ways great potential” and later leading footwear retailer
Merkal was acquired by OpCapita to further develop
• One of the most iconic moves in the apparel sector online and offline. With André announced to join
comes from French players. Spartoo in 2018, the Vivarte group is now ready to
continued its journey in its new configuration.
• Last summer, the acquisition of La Redoute was a
major omnichannel push by Galeries Lafayette,
taking a 51% stake in the e-commerce retailer, this
operation complete previous operations in this
segment such as the acquisition in 2016 of the flash
sale site BazarChic. Eventually, the French luxury While the fashion and retail industries face
department store intends to acquire the unprecedented global change, the complementary
entire control of La Redoute business with the positioning and expertise of La Redoute and
ambition to create the new leading omnichannel
Galeries Lafayette would establish us as a leading
retail group in fashion and home furnishings (with
€3.8 billion annual revenues for Galeries Lafayette physical and digital retailer specialised in fashion
and €750 million for La Redoute) and to optimize its and home furnishings, with French roots and
supply chain and sourcing. international outreach,”
• Pure player Spartoo grabbed Kindy’s child footwear Philippe Houzé,
assets and early 2018 will make a big stride and
Executive Chairman Galeries Lafayette .
doubled its revenues by acquiring André’s store
network from Vivarte group illustrating the
convergence of on / off line business models.
• Conforama, which invested in a 17% stake in May 2017
in the e-commerce pure player Showroomprivé, sold it
14 PwCEyewear players along the whole value chain Rautureau group earlier in the year (famous for its
are reviewing their positions: whilst the Luxottica - shoe brands Free Lance and No Name).
Essilor merger is expected to be finalised in the second
half of this year, other players are on the front foot: • The Qatar Luxury Group sold its majority stake in Le
Tanneur to Tolomei, leather industry player in France
• Kering Eyewear and Cartier (Richemont group) join which owns a number of brands across the sector and
forces and expect both industrial and commercial will recapitalization the group to back its development
synergies. plan.
• LVMH invests and sets up a JV with Marcolin, the • Both innovative watch brand Klokers and
Italian eyewear manufacturer. The partnership called Compressport, a sports technical wear brand surfing
Eyewear will start with Celine and Louis Vuitton on the running trend, closed their funding rounds
branded spectacles and should widen to the Group’s successfully.
other brands.
Innovative business models continue to thrive
• PE-backed UK player Inspecs invests in Killine, a
French manufacturer with strong positions in Asia • The mobile e-commerce site for high-end boutiques
including two plants. and brands, Jello Labs (now operating as Sprint)
continues to rock the online fashion space and raised a
• New player Jimmy Fairly wants to bring affordable new round of funding from venture capital investors
products onto the market and finds backing from ECP. including Groupe Arnault.
Luxury group LVMH turned the page on its Diamond • A selection of innovative retail concepts such as Online
distribution JV with De Beers group who bought back second-hand fashion players Vestiaire Collective,
LVMH’s 50% stake in the JV. Videdressing and the maternity clothing brand Envie
de Fraises got new rounds of funding from Private
New French brands with strong identity and equities.
rich product design content are backed by
Private equity and increasingly present family
offices and private investors
• SMCP, Sandro, Maje and Claudie Pierlot, acquired last
year by Chinese textile group Shandong Ruyi listed a
minority stake on Euronext in order to foster its
international growth.
• Fashion brand Sessun got support from ECP which
also owns Figaret and Le Slip Français.
• Contemporary cashmere brand Kujten and Lovely
Planet lingerie have attracted M Capital to support
their retail roll out strategy and enrich M Capital
clothing portfolio.
• French investor Xavier Marie (founder of Maisons du
Monde sold to Bain Capital) has added to his portfolio
of French fashion labels a 80% interest in the high-
end women's ready-to-wear label Paule Ka, along side
Change Capital, the previous owner, remaining a
minority shareholder. He took over control of the
PwC 15Deal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
Brands, Manufacturers, Retailers & Wholesalers
France-based LVMH launched a public tender in June to
CHRISTIAN
company makes BERNARD ARNAULT Corporate acquire the 26% in Dior it did not already
DIOR SA FR FR 12 111 43 700
and produces luxury (PRIVATE INVESTOR) (25,9%) own in order to simplify LVMH’s ownership
(25.9% STAKE)
items structure.
France-based
maker of luxury
products including
CHRISTIAN
fashion and LVMH fashion and leather goods division
DIOR LVMH MOET HENNESSY Corporate
FR accessories, FR buys Christian Dior Couture for an 6 500 1 750
COUTURE LOUIS - VUITTON SE (100%)
fragrance and enterprise value of €6.5bn.
S.A.
beauty products,
and jewellery and
timepieces
BC Partners reached an agreement to acquire
a majority stake in Pronovias the world’s
Women's wedding BC PARTNERS / PE largest bridal wear company, from its founder
PRONOVIAS SP FR 550 200
clothing FONDATEUR(S) (Majority) and sole owner Alberto Palatchi. This marks a
new era as BC intends to significantly
accelerate its development in the US
Shandong Ruyi organised the IPO of its
subsidiary SMCP keeping a controlling stake
Stock
SMCP FR/CH Ready to wear PUBLIC FR but allowing new financing to deleverage 541 786
Market
SMCP and allow for the financing of its future
international expansion
FCDE-backed jewellery manufacturer
Marcel Robbez-Masson consolidates its
CHRISTIAN MARCEL ROBBEZ- Corporate /
FR Jewellery FR position on the market with the acquisition 40 50
BERNARD MASSON PE
of the financially distressed manufacturer
Christian Bernard.
Qatar Luxury Group sold a majority stake of
LE TANNEUR
Le Tanneur to Tolomei Participations in a
& Luxury leather TOLOMEI PE
FR FR recapitalisation and development plan to 22 54
COMPAGNIE goods manufacturer PARTICIPATIONS SASU (50,2%)
improve the prospects of the luxury leather
SA
goods manufacturer.
LVMH take a stake of 10% in Marcolin as
glasses Corporate an initial step in their collaboration before
MARCOLIN IT LVMH FR 22 215
manufacturer (10%) creating a JV between the 2 groups to
manufacture glasses for LVMH brands
AGORA France-based
DISTRI- company engaged Corporate Gifi, the value retailer, integrated distressed
FR GIFI GROUPE FR - 347
BUTION SASU in distrib. of apparel (100%) Tati and intends on keeping the Tati brand.
(TATI) for men and boys
Kering entered into a strategic partnership
COMPAGNIE
KERING Corporate with Maison Cartier (Richemont) in a move
FR Luxury glasses FINANCIÈRE CH - 340
EYEWEAR (30%) to create industrial and commercial
RICHEMONT
synergies.
Swiss youth fashion retailer Tally Weijl
committed to maintain c.70 stores (to be
MIM FR Fast fashion retailer ETAM / TALLY WEIJL FR/CN Corporate - 150
converted to the TW concept) in the context
of MIM liquidation
UK-based company
DE BEERS
that designs, De Beers acquired remaining the 50% of De
DIAMOND DE BEERS GROUP
manufactures and Corporate Beers Diamond Jewellers from LVMH,
JEWELLERS FR/UK SERVICES UK - 139
retails fine diamond (50%) putting an end to its JV with LVMH, 16
LIMITED (50% (PROPRIETARY) LIMITED
jewellery and years after its creation.
STAKE)
watches
Vivarte engaged in a disposal and
Women's clothing Corporate reconstruction plan sold the clothing brand
KOOKAI SASU FR MAGI AU - 79
retailer (100%) Kookaï to Magi which has been its licensee
in Australia and New Zealand for 26 years
Xavier Marie has built up a portfolio of French
fashion labels. The founder and former CEO of
Maisons du Monde has recently finalised
France-based another fashion investment, after acquiring
PAULE KA
operator of multi- XAVIER MARIE (PRIVATE Individual majority stakes in Bonton and in the Rautureau
S.A. (80% FR FR - 60
label fashion INVESTOR) (80%) group and has bought an 80% interest in high-
STAKE)
boutiques end women's ready-to-wear label Paule Ka,
whose previous owner, Change Capital, remains
a minority shareholder. Early 2018, Xavier Marie
acquired the cashmere brand Bompard
16 PwCDeal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
E-Commerce
Showroomprivé found a new partner,
SHOWROOMP High-end online Corporate Conforama, to improve sourcing of home
FR CONFORAMA FR 157 540
RIVE.COM retailer (17%) related products in line with its
diversification strategy.
FIDELITY INVESTMENTS
Pure mobile retailer Jello Labs (operating
Online mobile / GROUPE ARNAULT
JELLO LABS under the Spring brand) closes a new round
US shopping application SAS / THRIVE CAPITAL US/FR PE 60 90
INC. (SPRING) of funding, including former investor Groupe
platform MANAGEMENT LLC /
Arnault.
BOXGROUP
Former shareholder Eurazeo reinvests
EURAZEO CAPITAL SA /
VESTIAIRE Online pre-owned along with new international partners in
VITRUVIAN PARTNERS
COLLECTIVE FR luxury clothing FR PE second-hand online specialist Vestiaire 58 100
LLP / IDINVEST
SA platform Collective to accelerate its international
PARTNERS
growth.
Galeries Lafayette Group acquired a 51%
stake in e-commerce retailer La Redoute for
an undisclosed sum and eventually intends
Online retailer to acquire the entire La Redoute business,
GROUPE GALERIES Corporate
LA REDOUTE FR specialized in FR making it the leading player in the French - 750
LAFAYETTE (Majority)
Apparel & Furniture apparel market in terms of revenues and
serve its ambition to create a new leading
omnichannel retail group specialised in
fashion and home furnishings.
OpCapita signed an agreement to acquire
Merkal Calzados SLU, a leading footwear
retailer in Spain, from Vivarte SAS. The
terms of the transaction are not being
PE
MERKAL FR/ESP Footwear specialist OPCAPITA UK disclosed. The fund will invest in its existing - 131
(Majority)
retail footprint, review and optimise product
offering, accelerate new store openings and
further develop its existing online
capabilities.
After acquiring Becquet, a catalogue
Online clothing &
3 SUISSES FR DOMOTI FR Corporate operator in 2016, Domoti took over 3 - 115
houseware platform
Suisses (in France and Belgium)
PwC Sources: Zephyr, Capital Finance, Merger Market, PwC analysis 17Personal Care & Cosmetics: no blemishes
In France independent selective perfumery retailers
Striking features in Personal Care & don’t just sit back: Passion Beauté gets PE backing to
Accessories this year: two “mega deals”, a continue its development and Eurazeo takes a majority
flurry of corporate cross-border activity (4 investment in NEST Fragrances, the premium home
inbound and 5 outbound out of 21 deals) and beauty fragrances NY based company, in
and extensive Private Equity involvement (7 partnership with its Founder Laura Slatkin.
out of 21).
Finally online players pursued their diversification
strategies: Feelunique (Thebigweb) reinforces its beauty
Cosmetics, ripe with M&A activity, from mega credentials and penetration of the French market with
deals to small venture - but the themes are common the acquisition of the online beauty content The
across deal size: active cosmetics, natural cosmetics and Beautyst (Madine), the French beauty content website.
innovation in product and customer experience.
• Active cosmetics is particularly prominent. L’Oréal
acquired three brands from Valeant (CeraVe,
AcneFree and Ambi) active in the USA, for a value
corresponding to 8x its €168 million revenues)
reflecting the price « bubble in the USA » for premium
assets. This represents the largest acquisition by
L’Oreal since IT Cosmetics in 2016.
• Revitacare is grabbed by a Chinese HA specialist and
Dermavita by Dima Corp a medical device and
cosmetology distributor.
• Innovative emerging concepts get backing from PE:
Skinjay with its essential oils shower solution and
Feeligreen with its technology-inspired device and
anti-ageing cream combination.
At the retail end of cosmetics
• The Brazilian group Natura Cosmeticos grabs the big
prize to step out of Brazil with The Body Shop
following L’Oréal’s decision to stop its attempt to
enter the retail segment.
• Sephora continues its European perfume shop
expansion with the acquisition of part of the Turkish
retailer Tekin Acar perfumeries network.
• Yves Rocher takes control of its distributors in
Romania and Hong Kong and invests in the Israel-
based traditional soap brand Sabon and associated
stores network, particularly appreciated in the USA
and Japan.
18 PwCDeal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
Brands & Manufacturers
After IT Cosmetics in 2016, L'Oreal
AMBI /
acquired the US skincare brands Ambi,
ACNEFREE / US Skincare specialists L'OREAL / L'OREAL USA FR Corporate 1 228 159
Acnefree and CeraVe to reinforce its fast-
CERAVE
growing Active Cosmetics division.
acquisition of traditional soap Israeli brand
Natural soap Corporate
SABON ISR YVES ROCHER S.A. FR Sabon particularly present in the US and 87 100
manufacturer (Majority)
Japan
Eurazeo took a majority investment in NEST
Fragrances in partnership with its Founder
and Executive Chairman Laura Slatkin. This
operation inaugurates Eurazeo Brands, the
firm’s fifth division launched last May 2017
NEST EURAZEO BRANDS / PE
US Perfume specialist FR to invest in consumer and retail brands with 59 -
FRAGRANCES FONDATEUR(S) (Majority)
global growth potential. Founded in 2008,
the NY based NEST is regarded as a leader
within both premium home and beauty
fragrances categories and has experiences
strong sales growth over the last 5 years.
Fareva, a leading global subcontractor for
the beauty and health markets will take
BCM Cosmetics Corporate ownership of BCM, Walgreens Boots
FR FAREVA FR - 250
COSMETIQUE manufacturer (Majority) Alliance’s contract manufacturing business
in the personal care sector and thus enable
to accelerate its global product strategy.
ACTIV Manufacturer of In a market driven by ageing population,
CM-CIC
MEDICAL FR incontinence FR PE (28%) Activ Medical Disposal invited CM-CIC to - 60
INVESTISSEMENT
DISPOSABLE protections contribute to its growth.
Retail & E-Commerce
Natura, the leading direct selling cosmetics
THE BODY Beauty care Corporate
FR/UK NATURA COSMETICOS BR company, acquires The Body Shop from 1 000 921
SHOP cosmetics (100%)
L'Oréal.
Online discount
BEAUTE cosmetics and Corporate SRP pursues its diversification strategy with
FR SRP GROUPE SA FR 18 19
PRIVEE SAS beauty products (60%) this beauty pure player.
retailer
Passion Beauté, a group of independent
PASSION
FR Perfumes retailer ESFIN GESTION FR PE perfume and cosmetics retailers, raised 5 116
BEAUTE
€5m to extend its reach.
PwC Sources: Zephyr, Capital Finance, Merger Market, PwC analysis 19“Other Specialists” have found their pet
subject
• PE funds showed interest in this fast-growing
The segment of Specialist Retailers is more segment: CM-CIC invested in animal nutrition
dynamic than in 2016 (51 deals in 2017 vs. specialist Idena (Innovation Développement) to
38 in 2016). Deals, mostly domestic (39 out support its international growth.
of 51) attracted both PE funds (23 deals)
and corporate acquirers, driven by • Medor et Compagnie (Estolon - subsidiary of garden
consolidation around larger players. center retailer Botanic) acquired pet food and
accessories retailer Rapid Croq to double its store
network.
Gardening and DIY have recorded the largest
deals of the segment. … and innovative / online business models:
The agri-cooperative InVivo, owner of the 2 • Subscription-based Animal box was acquired by
retailers Gamm Vert and Delbard, took over from L- Doctissimo to strengthen its e-commerce activity
GAM, its competitor, the Jardiland chain (which and diversification into pets.
operates over 189 stores, 90 of which are franchises).
Online players always keep attracting investors
(10 out of 23):
• Niche markets are digitizing: Chronocarpe and
this operation will enable InVivo retail to NaturaBuy, two online fishing platforms expand with
consolidate its leading position in the gardening and PE support and art selling online platform Artser
pet sector, optimize and widen its offering, invest in (Mumart) get backing from Frederic Jousset (co-
digital to offer a new client experience and grow founder of the customer experience specialist
WebHelp) to accelerate its expansion abroad in a
internationally”
growing online art market.
Thierry Blandinières, • Technology flourishes : Drone Volt acquired one of
CEO InVivo the reference drone selling online sites for
professionals in Denmark.
• The online subscription-based flowers delivery start-
up Bloomon, raised €21.4m, in order to reduce the
With the acquisition of the Bricorama chain (160 number of intermediaries “from grower to
stores), the French group of independents Les customer”.
Mousquetaires Intermarché, which already owns
Bricomarché and Brico Cash, climbs 3rd in the French
DIY sector behind leaders Adeo-Leroy Merlin and
Kingfisher-Castorama.
The petcare industry has been particularly active (11
deals across the whole value chain), with targets
specialized in nutrition and pet supplies …
• Animal nutrition and health global player Neovia
(part of InVivo) consolidated its position on the
animal nutrition segment with two acquisitions:
Mexican premix producer Apligen and French
dietary products specialist Agranix.
20 PwCDeal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
Retail & E-Commerce
After the acquisitions of Gammvert and
Delbard, InVivo continued its external
Corporate development strategy with the acquisition of
JARDILAND FR INVIVO FR - 730
(Majority) Jardiland in order to consolidate its position
as garden products leader distributor in
France.
Bricomarché has acquired Bricorama's
BRICORAMA activities (164 stores in France and Spain)
LES MOUSQUETAIRES Corporate
FRANCE FR FR which propels it to the 3rd position in the - 500
(INTERMARCHE) (Majority)
ESPAGNE French market thanks to a larger
geographical presence.
Through the acquisitions of Jardiland,
Gamm vert and Delbard, InVivo is making a
GAMM VERT Corporate
FR INVIVO GROUP FR large external development strategy in order - 130
SA (Majority)
to consolidate its position as garden
products leading distributor in France.
Mutares AG has sold Grosbill (it had
acquired from Auchan Group in 2015) to
Luc Boccon-Gibod, the founder of the
GROSBILL LUC BOCCON-GIBOD Corporate
FR FR company. Being a French multi-channel - 83
SAS (PRIVATE INVESTOR) (Majority)
retailer for consumer electronics, Grosbill
operates an online platform as well as own
retail stores.
PARTECH
The online flowers subscription-based
INTERNATIONAL
BLOOMON delivery start-up Bloomon, disrupting
PARTNERS SAS / ANGEL
NEDERLAND NL FR PE traditional business models by reducing 21 -
INVESTORS / INKEF
BV intermediaries ("from grower to customer"),
CAPITAL BV / FORTINO
raised €21.4m to support its growth.
BEHEER SPRL
LOJAS
FRANCAS DE
Corporate
PORTUGAL PT VINCI AIRPORTS S.A.S. FR 20 -
(51%)
S.A. (51%
STAKE)
Next Stage AM invested €10.5m in the
NEXTSTAGE AM / LO hunting and fishing equipment website
NATURABUY FR FR PE 11 3
CAPITAL NaturaBuy to accelerate its development
and reinforce its teams
FONDS DE FCDE acquired an interest in Canal Toys
CONSOLIDATION ET DE Corporate alongside a few banks in order to finance
CANAL TOYS FR FR 8 15
DEVELOPPEMENT DES (Majority) the group's expansion in Europe and the
ENTREPRISES USA.
More known under the name Fitness
Corporate
NETQUATTRO FR M CAPITAL PARTNERS FR Boutique, Nettquatro completed a €4.3 m 4 45
(Majority)
fundraising from M Capital Partners.
The omnichannel sports retailer
FITNESSBOUT M CAPITAL PARTNERS
FR FR PE Fitnessboutique raised €4.3m to support its 4 40
IQUE (EX MIDI CAPITAL)
national and international expansion.
Manufacturers
Vivescia completed the sale of its oilseeds
activity, Chamtor, to the ADM group in order
SOCIETE INDUSTRIELLE Corporate
CHAMTOR SA FR FR to concentrate on its core strategical - 171
DES OLEAGINEUX SA (100%)
activities and develop them through
acquisitions.
FDG is a diversified consumer goods
CM-CIC
PE player, which provides sourcing and
FDG FR INVESTISSEMENT / FR - 123
(Majority) merchandizing activities to supermarkets
MANAGERS
across 15 product categories.
Agrobiothers group opened for the first time
AGROBIO- GIMV / ACTIONNAIRES Corporate its capital to an external investor, GIMV,
FR FR - 65
THERS FAMILIAUX (Majority) that acquired a majority stake in the
company.
EXPRESSIONS Corporate
FR GIVAUDAN SW - 56
PARFUMÉES (Majority)
PwC Sources: Zephyr, Capital Finance, Merger Market, PwC analysis 21Deal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
Manufacturers
KURMA The start-up specialized in connected
PARTNERS,SEVENTURE Corporate equipments for sports amateurs and
FEETME FR FR 2 -
PARTNERS,SOS (Majority) professionals raised €2 m in an early stage
VENTURES fundraising
In a high growth context, the animal nutrition
INNOVATION
specialist Idena (Innovation Développement
DEVPMNT EN CM-CIC
FR FR PE en Nutrition Animale) sought funding to 2 23
NUTRITION INVESTISSEMENT SASU
invest in R&D and expand abroad, notably
ANIMALE SAS
on Asian markets.
Neovia strengthened its premix business
APLIGEN SA Corporate and extended its product offer by acquiring
MX NEOVIA SC FR - 22
DE CV (100%) Mexico-based livestock nutrition products
manufacturer Apligen.
Pierre Lannier raised €1.5 m to accomplish
PIERRE Corporate
FR AUDACIA FR its development strategy aiming at 2 15
LANNIER (Majority)
achieving €30 m revenues by 2021
22 PwCLooking into 2018
……. many factors should favor Consumer Markets’ deal
activity.
The majority of French CEOs continue to view deals as a
key driver to growth and profitability and we expect this
trend to continue well into 2018.
58%
+87%
of European CEOs are very
confident in global economic
prospects over the next 12 months
58%
vs. 31% in 2017
50%
34%
33%
Growth perspectives in France
31%
in the next 12 months
7th
17%
8%
Western Europe 9th + 2 places in the ranking of
growth prospects
showing global CEOs’ view of
France attractiveness
2012
2013
2014
2015
2016
2017
2018
PwC’s 21st CEO survey
PwC 23Specific sector trends which we believe will Outbound deal activity, which decreased slightly in
nurture future M&A activity: 2017 with 14% of total deals vs 16% in 2016 as
uncertainties overseas remained, is expected to expand
• Competition will continue to fuel deal activity; the again in 2018. The return of more solid domestic
search for growth and customer attention, economic trends should further boost the confidence of
convergence and vertical integration. Traditional French players to search for new growth segments in
retailers may seek new growth platforms and Europe and further abroad.
consider innovation to expand capabilities and gain
access to consumers. Partnerships between retailers As a parallel move, Inbound deal activity should also
and brands may furthermore increase so as to increase as foreign investors look more favorably
deliver improved customer service. towards France and Europe. Europe’s current
aspiration towards further economic and political
• As demand for organic ingredients spans cohesion should attract increasing attention from cash-
millennials and older generations alike, organic rich US corporates and Asian players searching for
offerings enter new distribution channels and geographical diversification, scale and brands.
markets. Lifestyle-based dietary trends (e.g. vegan or
gluten-free) continue on their path to mainstream Any significant, unexpected shift in the socio-
acceptance, these smaller niche brands become a political factors or political instability remain
focus of larger food manufacturers and distributors disruptors, creating both opportunity and risk.
seeking prospects for growth. Diet and nutritional Continued growth in valuations and profit multiples
ingredients, aromatherapy and healthcare services should further stimulate competitiveness for deal
more easily accessible to consumers may also activity in 2018.
become ways for retailers to drive traffic in stores.
Overall, 2017 was another exceptional year in
• Technology and innovation has proved to be a the French Retail & Consumer M&A markets. As
main driver for deals and we anticipate a continued stated, we expect another strong M&A market
investment in new technologies including artificial in 2018, primarily driven by further availability
intelligence, Internet of Things connectivity, of financing at a cost that remains low, an
domestic voice assistance services, enhanced reality abundance of private equity capital doubled by
and 3D printing. increasing number of family offices active in
this sector. The more stable political
• Shareholder activism, looking for board seats or environment, positive economic prospects in
management changes, pushing for sales, mergers or France and Europe should further attract M&A.
IPOs, as well as divestments or spinoff of activities, This will be complemented by the continuous
are challenging the idea that bigger is better. This transformation of the distribution models and
trend is expected to fuel increasingly bigger M&A search for operational economies of scale for all
operations in the future. Associated to the above the actors.
costly transformations are likely generate
accelerated divestments as portfolios will need to be
selectively reviewed.
• Strategic focus on cost-competitiveness should
remain a driver that can allow more cost
optimization and brand selectivity.
24 PwCAPPENDICES
Deals sealed, by sub-sector
PwC Sources: Zephyr, Capital Finance, Merger Market, PwC analysis 25Food Products & Distribution
Deal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
Food Processing
Dairy alternative
products
manufacturer, Dairy Danone completed its largest deal in a
WHITEWAVE
products decade by acquiring WhiteWhave, a US
FOODS Corporate
US manufacturer, DANONE SA FR maker of upmarket natural and healthy 11 787
COMPANY, (100%) 2 846
Organic packaged foods. It will make Danone the world’s
THE
salad manufacturer, biggest producer of organic dairy products
Plant-based foods
manufacturer
Lactalis completes its acquisition of
Stonyfield from its main competitor Danone.
STONYFIELD Organic yogurt Corporate
US/FR GROUPE LACTALIS SA FR Struck for 740 €M, this deals makes it 740 334
FARM INC. manufacturer (100%)
amongst 2017's largest and brings Lactalis
to the forefront of the food industry.
French canned-vegetable company
Salad boxes
READY PAC Bonduelle has acquired a privately held
manufacturer, Corporate
PRODUCE US BONDUELLE SA FR California producer of fresh prepared salads 379 740
Snacks (100%)
INC. Ready Pac, to strengthen its position in the
manufacturer
US market
France-based
natural health
ingredients producer German natural ingredients group Doehler
HERB'S
and supplier to strengthened its healthy food segment by
INTERNA- >10M€ -
FR nutraceutical, DOEHLER GROUP SE DE Corporate acquiring Herb's International Service, a 25
TIONALDeal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
Food Processing
With €200m in yearly revenues, Sodebo's
SOCIETE
competitor Mix Buffet, one of France's main
NOUVELLE
Pastry products Corporate pre-packaged salad manufacturers, has
FARANDOLE FR MIX BUFFET SAS FR 6 2
manufacturer (100%) successfully sealed a deal to acquire this
GOURMANDE
quiches and petits fours producing facility
SASU
from Délifrance
CARAVELLE SA /
The ready-made organic baby food
AQUITAINE CREATION
Baby food specialist Yooji welcomes Danone
YOOJI SAS FR INVESTISSEMENT SAS / FR PE 5 0
manufacturer Manifesto Ventures amongst its
AQUI-INVEST SAS /
stakeholders.
CAPAGRO INNOVATION
France-based
company engaged Arterris, a French agri-cooperative,
in production, consolidated its positioning in the South of
GROUPE SUD marketing, and Corporate France by merging with Groupe Sud
FR ARTERRIS FR 2 84
CEREALES distribution of (100%) Céréales, a cooperative engaged in
agricultural products agricultural products, including food grains
including food grains and oil seeds
and oil seeds
Entoma, also known as Jimini, successfully
finalized its €1m fundraising campaign,
BPI GROUPE SA / LE
Seasoned insect which should allow it to further expand
ENTOMA SAS FR COMPTOIR DE FR PE 1 0
snack manufacturer through R&D and develop its insect-based
L'INNOVATION SASU
product portfolio and accelerate the
acceptance of insects in food
Feed has the objective to become the
Vegan meals
FEED SASU FR SENSEII VENTURES SAS FR PE European leader of Smart Food with its 1 -
manufacturer
ultra-healthy meals and raised €1m
WILLIAM
JACKSON Through Florette Holding SAS, Agrial
FOOD GROUP further strengthens its footprint on the UK
Salad processing FLORETTE HOLDING Corporate >10M€ -
LTD'S WIGAN UK FR market by acquiring My Fresh Prepared -
activities SAS (AGRIAL) (100%)Deal size
(Equity
Target Country Activity Acquiror Country Type Description Adjusted Revenues
Stake
(€m)
value) (€m)
Food Processing
Belgian ready meals specialist Ter Beke
acquired the remaining 67% stake in
STEFANO Pasta meals Corporate
FR TER BEKE NV / SA BE Stefano Toselli (pasta ready meals - 67
TOSELLI SAS manufacturer (67%)
specialist) to create operational and
commercial synergies
The French dairy cooperative Maitres
Corporate
YEO FRAIS Dairy products MAITRES LAITIERS DU Laitiers du Cotentin, acquired (private label)
FR FR coop - 66
SAS manufacturer COTENTIN SCA yoghurts specialist Yeo Frais, adding a new
(100%)
technology to its portfolio
French co-operative Agrial struck a deal to
fully acquire Brient, a high-end meat
Ham and sausages Corporate specialist. This should allow Agrial to
BRIENT FR AGRIAL FR - 65
producer (100%) strengthen its poultry and meat division,
which already accounts for over 6% of total
revenues (approximately €275m)
Lactalis pursues its expansion strategy by
Corporate striking a deal with Karoun, a family-owned
KAROUN US LACTALIS FR - 60
(Majority) US dairy-manufacturer (halloumi, labné,
yogurt…)
AZULIS CAPITAL / MARC
LÉVY / FRANÇOIS
Grain d'Or Gel and Lubrano et Fils' merger
GRAIN D OR France-based LUBRANO / BNP
gave birth to a €50m-turnover group
GEL SAS / manufacturer of PARIBAS
FR FR PE Novepan, gathering complementary product - 50
LUBRANO ET frozen industrial DÉVELOPPEMENT /
offerings and geographic coverage on high-
FILS bakery products ARKÉA CAPITAL / SWEN
end frozen bakery products
CAPITAL PARTNERS /
GROUPE SMA
To extend its range of products and create
VERQUIN synergies, Sucralliance, a French candy
Sweets Corporate
CONFISEUR FR SUCRALLIANCE SAS FR producer, acquired its fast growing - 45
manufacturer (100%)
SAS competitor Verquin Confiseur (both branded
and private label producer)
Through its holding Saveurs & Délices, the
bakery group Buton confirms its sweet tooth
Chocolate Corporate
MONBANA SA FR SAVEURS & DELICES FR by further strengthening its chocolate - 44
manufacturer (100%)
manufacturing activity through the
acquisition of Monbana.
Céréco, one of France's leaders in organic
France-based
SARL Corporate cereals sells the majority of it's stakes, to
FR producer of organic TRIBALLAT NOYAL SAS FR - 40
CERECO (Majority) long-term partner Triballat Noyal, who now
breakfast cereals
enters the breakfast sub-segment.
French dessert manufacturer Mademoiselle
Cake and desserts HOLDING Dessert acquires UK-based Ministry of
MINISTRY OF Corporate
UK manufacturer, Cake MADEMOISELLE FR Cake. Through this acquisition, the French - 34
CAKE LTD (Majority)
and desserts retailer DESSERTS SAS supplier to Marks & Spencer Food, amongst
others, further expands in Europe.
The French agri industrial company LDC,
COUVOIR Corporate specialized in poultry and meat acquired the
FR Agrifood LDC FR - 32
PERROT (100%) chick-hatching company Couvoir Perrot, in
order to optimize supply
France-based Pork products specialist Popy Group
AMAND-
manufacturer of Corporate acquired its Breton competitor specialized in
BIANIC FR POPY GROUP FR - 30
pork and fish (100%) andouille and thus completed its distribution
GROUP
products channels
Olive spreads
CARVEST CREDIT Olives & Co SAS welcomes news investors
manufacturer,
OLIVES & CO AGRICOLE REGIONS so as to further pursue its organic growth
FR Olives farming FR PE - 30
SAS INVESTISSEMENT SAS / strategy and gain support in seizing future
services, Soup
IDIA-SODICA SAS external growth opportunities.
manufacturer
Gozoki pursues its growth strategy in the
France-based ready-meals segment by adding yet another
SOCIETE Corporate
FR producer of ready SOCIETE GOZOKI FR new-comer to its portfolio: Société Collet, - 25
COLLET (Majority)
meals whose revenues reached 25€M euros in
2017.
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