Industry Report: Agribusiness & Food Q2 2025 [FOCUS]

Key Report Highlights

• M&A Volume Slows but Quality Assets Still Attract Buyers
  M&A activity across agribusiness, food, and beverage slowed in Q2 2025, with 73 completed transactions, down from 96 in Q1. The dip—mostly in April—was attributed to trade tensions and economic uncertainty, though activity rebounded in May and June. Strategic buyers remain focused on portfolio expansion and operational streamlining, while private equity continues to target cash-flow-positive, growth-ready companies.
• Private Label and Specialty Brands Remain M&A Hotspots
  Private equity buyers are leaning into private label manufacturing, as shown by Swander Pace Capital’s acquisition of Maple Donuts and Graham Partners’ continued investment in Commercial Bakeries. At the same time, large strategics are acquiring better-for-you and specialty food brands like Daily Harvest and Heartisan Foods, reflecting consumer demand for health and wellness-focused CPG offerings.
• Bakery and Dairy Segments Lead Deal Volume
  The bakery sector continues to consolidate, with HC Private Investments launching a platform via the acquisitions of Snackwerks and Specialty Bakers. Meanwhile, the U.S. cheese market is drawing renewed investment, with Gellert Global acquiring Heartisan Foods to bolster its specialty cheese portfolio.
• Better-For-You Foods Drive Valuation Premiums
  Valuations are being driven by intellectual property, innovation pipelines, and vertical integration. The Better-For-You segment is projected to grow substantially—BFY snacks alone are expected to reach $78.2B by 2030, growing at a 7.6% CAGR. Strategic and financial buyers are paying premiums for companies with clean-label products, functional ingredients, and repeatable innovation models.
• Distribution and Fresh Produce Logistics Stay Active
  Distribution remains a key area of deal activity, with GrubMarket continuing its acquisition spree—including Delta Fresh Produce and Coast Citrus Distributors. Buyers are prioritizing logistics assets that enable freshness, scale, and regional coverage, particularly in produce and foodservice channels.

FOCUS Investment Banking is a national middle market investment bank providing M&A advisory, capital raising, and corporate finance services to privately held companies. Founded over 40 years ago, the firm specializes in advising lower middle market businesses—typically with $5 million to $300 million in revenue—across a broad range of industries including aerospace & defense, healthcare, technology, manufacturing, business services, and automotive.

With a team of seasoned professionals who bring deep operating and transactional experience, FOCUS delivers partner-led, tailored guidance on sell-side and buy-side M&A, growth capital, exit planning, and valuation services. The firm combines industry expertise with global reach through its affiliation with M&A Worldwide, offering access to international buyers and investors.

Headquartered in Washington, D.C., FOCUS also maintains offices in Atlanta, Chicago, Los Angeles, Miami, and Dallas. Securities transactions are conducted through FOCUS Securities LLC, member FINRA and SIPC.

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