Snacks, specialty bread and baby food were popular purchases among food corporations during the second quarter.
In the snack category, Campbell Soup Co. bought Denmark-based cookie and cracker maker Kelsen Group A/S in June, and B&G Foods, Inc. topped off its snack portfolio with the May acquisition of TrueNorth nut clusters and the June agreement to buy Pirate Brands better-for-you snacks for about $195 million. Campbell also was among several companies to snap up organic baby food brands during the quarter with its purchase of Plum Organics finalized in June, following the May acquisitions of Happy Family by Danone and Ella’s Kitchen, Ltd. by the Hain Celestial Group, Inc.
But perhaps the biggest news in merger and acquisition activity during the quarter was the May announcement of Hong Kong-based meat processor Shuanghui International Holdings Ltd.’s approximate $7.1 billion offer to acquire Smithfield Foods, Inc.
As the largest acquisition of an American company by a Chinese company, the deal raised concerns for lawmakers, prompting a meeting between Smithfield Foods and the U.S. Senate Committee on Agriculture, Nutrition and Forestry in July. During his testimony, C. Larry Pope, chief executive officer of Smithfield Foods, said: “This transaction will give Smithfield new channels to market and the strongest distribution network in China. By combining Shuanghui and Smithfield, we will accelerate both companies’ strategic plans, broaden our market reach and create exciting growth opportunities.”
Other large deals during the quarter included the completion of the $28 billion takeover of H.J. Heinz Co. by Berkshire Hathaway and 3G Capital, as well as an offer valued at €7.5 billion ($9.8 billion) to acquire the D.E Master Blenders 1753 coffee company by a German investor group.
