Key Takeaways
- M&A activity in horticulture stabilized in 2025, aligning closely with 2024 transaction levels according to a new report by Oaklins.
- Private equity participation recovered, accounting for nearly one-third of total deals.
- Consolidation is driven by margin pressure, succession planning, and scale requirements.
- Automation, equipment, and technology-focused horticulture businesses attract higher valuations.
- Long-term sector fundamentals continue to support selective growth and investment activity.
M&A Activity Returns to More Stable Levels Per Oaklins Latest Report
Recent analysis from Oaklins indicates that merger and acquisition activity in the global horticulture sector has entered a period of stabilization following several years of volatility linked to inflation, energy costs, and broader macroeconomic uncertainty. Transaction volumes in 2025 remained broadly consistent with those recorded in 2024, signaling a more predictable operating environment for buyers and sellers.
Despite remaining below historical peak levels, deal activity continues to be supported by structural factors within the sector. These include the need for operational efficiency, professional management structures, and succession solutions among founder-led and family-owned businesses.
“Even in a challenging economic climate, horticulture has demonstrated a strong level of resilience,” said Frank de Hek, Managing Partner and Horticulture Specialist at Oaklins Netherlands. “Ongoing fragmentation across the value chain continues to create opportunities for consolidation.”
Oaklins Sees Private Equity Participation Rebounds
After a notable slowdown between 2022 and 2024, private equity participation showed signs of recovery in 2025. Financial sponsors accounted for approximately 32% of horticulture-related transactions, reflecting renewed confidence in the sector’s long-term fundamentals.
Oaklins notes that private equity investors are drawn to horticulture due to its relatively stable demand dynamics, recurring revenue profiles, and opportunities to improve margins through operational optimization and buy-and-build strategies. Interest spans both edible and ornamental horticulture segments, with a growing focus on technology-enabled businesses.
Valuations Vary Across the Value Chain
Valuation multiples continue to diverge depending on a company’s position within the horticulture ecosystem. Businesses operating in automation, robotics, greenhouse technology, and data-driven production systems are achieving higher multiples, often exceeding those seen in traditional growing or wholesale operations.
More conventional horticulture businesses typically transact at mid-range EBITDA multiples, reflecting tighter margins and exposure to input cost volatility. However, Oaklins highlights that well-positioned operators with scale, differentiation, or strong customer relationships remain attractive acquisition targets.
Guido Janssen, CEO of Lumiforte, commented on the role of strategic expansion: “Diversification has allowed us to build additional growth avenues while staying firmly rooted in horticulture. Financial partners play an important role in supporting structured growth and acquisitions.”
Outlook for the Sector
Looking ahead, Oaklins expects continued selective consolidation across the horticulture sector rather than a rapid return to peak transaction volumes. Growth is anticipated to be driven by technology adoption, sustainability-linked efficiency gains, and the increasing professionalization of operations.
While external pressures remain, the sector’s underlying demand fundamentals and evolving investment landscape continue to support measured M&A activity and long-term value creation.
