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UK food & beverage mergers & acquisitions shows resilience in 2025
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Friday, 30 January, 2026, 14 : 00 PM [IST]
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London, UK
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UK food and beverage mergers and acquisitions activity remained resilient in 2025 despite ongoing geopolitical uncertainty and cautious consumer sentiment, according to a latest market assessment by Oghma Partners.
Total deal activity in 2025 stood at 133 transactions, reflecting a 12 per cent decline compared to 2024. Aggregate deal value reached approximately £2.5 billion, down 9 per cent year-on-year, excluding the £1.5 billion acquisition of Bakkavor by Greencore. In the third quarter alone, 39 transactions were recorded, marking a 33.9 per cent year-on-year decline, while deal value remained broadly stable at around £540 million compared to £612 million in Q3 2024.
Smaller transactions continued to dominate the market, with 65.4 per cent of deals valued at £10 million or below. However, higher-value transactions gained momentum, with 12 per cent of deals exceeding £50 million, in line with the five-year average and up from 9 per cent in 2024. The landmark Greencore-Bakkavor merger, valued at £1.5 billion at 7.9x EV/EBITDA, emerged as the standout transaction, driving consolidation in the chilled convenience foods segment.
Beverages accounted for the largest share of deals at 26.3 per cent, while the UK meat sector also witnessed significant consolidation, driven by cost pressures and a 16 per cent rise in meat prices. Notable transactions included OSI’s acquisition of Karnova, Cranswick’s £32 million purchase of James T Blakeman, and Sysco’s £54 million acquisition of Fairfax.
UK corporates remained the most active buyers, accounting for 60.9 per cent of transactions, followed by overseas acquirers at 21 per cent and financial buyers at 18.2 per cent.
Commenting on the outlook, Mark Lynch, partner at Oghma Partners, said that despite geopolitical tensions and market volatility, deal valuations remained robust. He added that easing interest rates, moderating inflation and selective strategic consolidation are expected to keep deal volumes and values broadly in line with 2025 levels in the year ahead.
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