While M&A activity by itself was down 12% to 155, 2012 saw over 50% growth in financings, to 92, indicating a strong interest among venture capital and other funds in fueling growth for the next generation of nutrition and health & wellness companies.
“These fundamental trends support our mission as a gateway for growth companies to obtain capital and seasoned partners to accelerate their development towards an eventual acquisition and exit,” says Grant Ferrier, NCN CEO and co-founder. “NCN investor meetings offer a great way for companies looking for financing or an exit to present themselves and gain informal access to over 50 premium industry investors in one day,” adds Ferrier.
Among food and beverage company financings in particular, in the course of 2012, four were previous Nutrition Capital Network presenting companies. Especially notable in 2012 was the unprecedented number of investments in technologies that support nutrition and health & wellness, with 28 financings recorded.
“While most categories saw an uptick, technology-driven ventures saw the greatest increase last year. And we expect this trend to continue as consumers increasingly leverage technology in their wellness efforts,” says Mike Dovbish, NCN Executive
One example was the digital platform Farmigo, which provides a personalized online marketplace for locally harvested foods. Sherbrooke Capital, an NCN Cornerstone Investor, was among investors providing Farmigo with an $8M financing during the year.
NCN also released its list of Top 15 Transactions in Nutrition and Health & Wellness for 2012, including Campbell Soup’s $1.6B acquisition of Bolthouse Farms, UK’s Reckitt’s $1.4B acquisition of Schiff Nutrition and the $500M and $900M acquisitions of leading fish oil suppliers Ocean Nutrition and Pronova BioPharma by DSM and BASF respectively. The list was compiled based on strategic importance, size or scale, relevance of the players involved and other factors.
Transactions are listed by segment and in no particular order.
“These top deals illustrate the continued attractiveness of the nutrition and health & wellness category to large, well-established players capable of providing largeticket exits to a select few, highly successful companies,” says Ferrier. “Also, the recent presence of retailers and contract manufacturers on this list are an early indication of maturity in the industry”.
With increased maturity and greater interest among consumers in nutrition and health & wellness offerings come higher demands on brands to provide an allaround compelling brand experience.
“The acquisitions of Method by Ecover and of BluePrint by Hain Celestial in 2012 demonstrate the critical importance of great brand execution, right down to the design of the physical object consumers interact with, to the success of brands in the nutrition and health & wellness categories,” says Marie Benedix, NCN Principal. NCN has convened 16 investor meetings since 2007 and has a successful track record of matching entrepreneurs, growth companies and technology innovators with suitable investors, acquirers and strategic partners. Of the 287 companies that have presented at the NCN Investor Meetings from 2007-2012, 43% have completed some form of transaction.
Past presenters that have closed significant transactions include Food Should Taste Good, a company acquired by General Mills in February 2012, in addition to Annie’s, Immaculate Baking, Zico and Zhena’s Gypsy Tea.
NCN’s Spring Investor Meeting in New York, NY, on April 29-30 will feature 10- minute presentations by 18-22 qualified presenting companies, followed by opportunities for structured one-on-one meetings, as well as informal networking.