Key Takeaways
- Verdant Partners Reports M&A activity declined in 2024 due to economic pressures and lower farm profitability.
- Biologicals, automation, and specialty ingredients attracted sustained investor interest.
- Strategic divestitures increased, as companies streamlined operations and refocused on core competencies.
- 2025 is expected to see a rebound, driven by lower interest rates and improved market conditions.
Verdant Partners’ 2024 M&A Review & Outlook
The Verdant Food and Agribusiness M&A Review & Outlook – 2024, published by Verdant Partners, reports a 24% decline in global M&A activity in the agribusiness sector. Lower commodity prices, shifting consumer demand, and tighter capital markets led to a slowdown in deal-making, particularly in crop inputs, animal health, and processing.
Despite these challenges, biologicals, robotics, and specialty ingredients remained key areas of investment, with strategic acquisitions continuing in these high-margin sectors.
M&A Trends Across the Agribusiness Supply Chain
Upstream Market Activity
- Ag Technology: Investments continued in automation and AI-driven solutions, with AGCO acquiring an 85% stake in PTx Trimble and Kubota acquiring Bloomfield Robotics.
- Biologicals & Crop Inputs: Bridgepoint acquired a stake in Meristem Crop Performance, while Bayer expanded its biologicals portfolio.
- Seed Industry Restructuring: Companies exited breeding and seed production, shifting toward trait development and licensing partnerships.
Downstream Market Activity
- Fresh Produce & Processing: Mucci Farms, Grimmway Farms, and Fresh Express expanded greenhouse and processing capabilities, while the Kroger-Albertsons merger faced regulatory hurdles.
- Specialty Ingredients: General Mills acquired Whitebridge Pet for $1.5 billion, and Tate & Lyle strengthened its plant-based ingredient portfolio.
- Animal Health & Feed: Merck acquired Elanco’s aquaculture business for $1.3 billion, and Phibro expanded its medicated feed additives portfolio.
Verdant Outlook for 2025: A Market Rebound?
Verdant Partners projects a rebound in M&A activity in 2025, fueled by:
- Lower interest rates, improving financing conditions.
- Stronger public market performance, boosting company valuations.
- Increased consumer confidence, driving demand for food and agricultural inputs.
- Strategic realignments, as companies optimize portfolios through divestitures and acquisitions.
Garrett Stoerger, Managing Partner at Verdant Partners, commented: “2024 was a year of market correction, but 2025 presents renewed opportunities for strategic consolidation and investment in high-growth segments like biologicals, automation, and specialty ingredients.”
Key Financial & M&A Transactions in 2024
| Transaction | Segment | Details |
|---|---|---|
| Bridgepoint – Meristem Crop Performance | Biologicals | Bridgepoint acquired a stake in Meristem, expanding bio-based inputs. |
| AGCO – PTx Trimble JV | AgTech | Strengthened AGCO’s commitment to autonomous solutions. |
| Mucci Farms – Greenhill Produce | Fresh Produce | Expanded greenhouse operations, becoming the largest in North America. |
| Merck – Elanco Aquaculture | Animal Health | $1.3B acquisition of Elanco’s fish health business. |
| General Mills – Whitebridge Pet | Specialty Ingredients | $1.5B deal emphasizing premium pet nutrition. |
Read the complete report by Verdant Partners here.
