10.01.13
Nutrition Capital Network (NCN), San Diego, CA, an organization that connects investors with high-potential growth companies in the nutrition and health & wellness industry, forecasted that the industry is on track to match the number of deals reported in 2012 despite a slight cooling in the pace of transactions.
In 2012, merger and acquisition (M&A) and investment activity benefitted from pent-up demand due to tough market conditions in prior years. Early numbers from the NCN Transaction Database for the first six months of 2013 indicated the nutrition and health & wellness industry remains well ahead of 2009-2011 in terms of total transactions (acquisitions and financings combined), while average deal size is on par with 2012.
“We continue to see strong interest from larger companies, and also from venture capital and private equity firms, in the nutrition and health & wellness space,” said Grant Ferrier, NCN principal and co-founder. “In particular, we have seen a shift to more financings for small and mid-size companies compared to acquisitions. This is likely due to a reduction in the number of larger target candidates available in our sector. Instead what we are seeing are investors funding the next generation of promising growth companies.”
By far the most active category for both M&A and financings in the first half of 2013 has been healthy food & beverages, according to NCN, with large corporations making strategic acquisitions to broaden their portfolios and increase their reach among more health conscious consumers.
In financings, the lion’s share of the action is in early-stage natural and organic food brands, followed by technology plays in wellness-related digital applications, NCN revealed.
NCN is holding its Fall Investor Meeting on Oct. 28-29th in San Francisco, CA, where 20-22 selected growth companies will present to an audience of 50-70 investment groups, representing more than $6 billion in capital. NCN’s annual ingredient- and technology-focused investor meeting follows on Nov. 13 in Las Vegas, NV.
In 2012, merger and acquisition (M&A) and investment activity benefitted from pent-up demand due to tough market conditions in prior years. Early numbers from the NCN Transaction Database for the first six months of 2013 indicated the nutrition and health & wellness industry remains well ahead of 2009-2011 in terms of total transactions (acquisitions and financings combined), while average deal size is on par with 2012.
“We continue to see strong interest from larger companies, and also from venture capital and private equity firms, in the nutrition and health & wellness space,” said Grant Ferrier, NCN principal and co-founder. “In particular, we have seen a shift to more financings for small and mid-size companies compared to acquisitions. This is likely due to a reduction in the number of larger target candidates available in our sector. Instead what we are seeing are investors funding the next generation of promising growth companies.”
By far the most active category for both M&A and financings in the first half of 2013 has been healthy food & beverages, according to NCN, with large corporations making strategic acquisitions to broaden their portfolios and increase their reach among more health conscious consumers.
In financings, the lion’s share of the action is in early-stage natural and organic food brands, followed by technology plays in wellness-related digital applications, NCN revealed.
NCN is holding its Fall Investor Meeting on Oct. 28-29th in San Francisco, CA, where 20-22 selected growth companies will present to an audience of 50-70 investment groups, representing more than $6 billion in capital. NCN’s annual ingredient- and technology-focused investor meeting follows on Nov. 13 in Las Vegas, NV.