H0305 Acquisition Candidates for a Sugar Company

Have a look at our Introduction and Brochure for a description of our consultancy work.

The objective of this project was to identify acquisition candidates for a sugar company.

In an earlier study, the strategy and approach to growth and diversification of a number of other sugar companies was reviewed. The conclusion was that while relatively few sugar companies had diversified successfully, the most successful were x and y. Although both companies had acquired other sugar companies, one business had developed through acquisition, whilst the other had grown organically. In that study, suggestions were made about seven alternative exclusive strategic platforms. After consideration of these platforms, the focus for this study was directed to three ingredient types and market sectors.

Initially, we assembled an inclusive list of the companies operating in the three sectors. This was done using in-house as well as publicly available information. In addition, a large number of merchant banks and venture capital groups were asked for suggestions from their current portfolios of companies that might be or become available.

First Stage

A number of companies were eliminated from consideration immediately as clearly unsuitable or unrealistic as acquisition candidates. The reasons included size – either much too big or much too small; location; nature of business – generally we did not include companies that were only traders and added no value.

Second stage

The companies on the now reduced lists were screened using relevant criteria. Screening criteria were grouped into categories and ranked for importance. Additional considerations were added relating to the candidate and the market. This yielded a screening system that was subsequently organised and simplified to emphasise the more important factors. Within the target sectors, companies were assessed and ranked according to the new system.

The screening system is described in detail and the results of the assessment ranking are reported in full in the report. Each company is also described in the report along with an outline of the reasons for its assessment.

Third stage

For each company that was assessed in the previous stage, we make one of four recommendations:

  1. +++ Arrange to meet this company as soon as possible;
  2. ++ Discuss and consider – probably should arrange to meet this company:
  3. + Keep watching this company, meet if convenient in the foreseeable future;
  4. – This company would not be a suitable acquisition.

Where possible, quantitative financial and other data was obtained. For companies where appropriate contacts were available, enquiries were made about availability.
Data was obtained about the markets and market trends within the target ingredient sectors to allow each of the candidate companies to be seen in the context of its market sector.

Click here for a PDF of the contents of the study or look below for an outline.

Contents of the report include:

Objectives and Background

Method

  • First Stage
  • Second Stage
  • Third Stage
  • Markets and Trends

Principal Findings and Conclusions

Recommendations and Future Actions

Hydrocolloid/Texturiser Business

  • Recommendations and CPL Analysis: Entering the Hydrocolloid/ Texturiser Business
  • Market Size and Trends
  • Hydrocolloid/Texturiser Characteristics and Applications
  • Hydrocolloid/Texturiser Suppliers and Structure of the Business

Detailed profiles of 26 companies

Hydrocolloid/Texturiser Tables

Appendix – Specific Hydrocolloids

Functional and Healthy Ingredients

Markets

  • Functional Foods and Ingredients
  • Consumer Perception of Functional Food/Ingredients
  • Functional Ingredients Market Structure
  • Over the Counter (Otc) / Dietary Supplements (Vms)
  • Functional Ingredients and their Nutritional Effect

Companies Investigated and the Non Parametric Analysis

Profiles of 19 companies including:

  • Company Structure
  • Financials
  • Activities and Products
  • Internal Divisions
  • Fit
  • Additional Information

Functional and Healthy Ingredient Tables

Dairy Ingredients

Markets

  • Dried Milk Powders
  • Whey, Wpc and Wpi
  • Lactose

Types of Dairy Ingredient

  • Dried Milk Powders
  • Caseins and Caseinates
  • Dry Whey
  • Whey Protein Concentrates
  • Whey Protein Isolates
  • Wpi Constituents
  • Lactose

Strategies Adopted by Dairy Companies

  • Major Strategic Objectives
  • Outline of the Strategies Followed by 9 Major Dairy Players
  • Conclusions

Analysis of Dairy Ingredients Companies

  • Summary of Analysis and Recommendations
  • Non-Parametric Analysis
  • 12 detailed company profiles

Reports from 51 Investment Banks and Venture Capital companies contacted

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