With “yeast” the already signed deals amounting to 7 billion euros which, as soon as they are completed, in 2024 transactions for acquisitions and mergers are estimated to reach 8-9 billion euros, as reported by ot.gr.
This is a much better performance compared to 2023, a year in which a 15-year record was recorded in terms of the absolute number of acquisitions and mergers (116 transactions), but in terms of value it decreased by 4.5 billion euros compared to 2022, as the price of most transactions was not announced. It is recalled that in 2022 a record was recorded in transactions worth 12 billion euros.
The growth story of the Greek economy, the growth prospects and the recovery of the investment grade, which for the first time puts Greece and Greek companies in the “field of vision” of large investors, create the background for new success stories even though domestic assets have become more expensive, but still attractive.
“The dynamics of acquisitions and mergers continues unabated, as the first figures of 2024 show that the current year can be another record year” said Mr. Thanasis Panopoulos, Partner and head of the Deals department of PwC Greece, during the presentation of the of the consulting company’s annual report on acquisitions and mergers in 2023 and the outlook for 2024.
3-4 food deals are coming
Although the food and beverage industry is more… slow-burning than others, such as that of Renewable Energy Sources (RES) where “almost every week there is a transaction and interest from foreign and Greek investors”, according to Mr. Giorgos Makripidis, Partner and Head of Corporate Finance at PwC Greece, remains equally on the “radar” of foreign and of the Greek capitals.
In fact, within the next quarter, 3-4 deals are likely to be announced that are currently in the works, with industrial sellers who either do not have a successor status or the price offered is such that leads them to sign the upcoming agreements.
These deals that may take place in the next period do not count the transaction of the change of ownership in the Greek activity of Avramar, which is waiting for the creditor banks to unlock the much-discussed emergency financing of 20 million euros, vital for the survival of the largest fish farming group of the country.
However, according to sources with close knowledge of the developments, the amount of the “haircut” of the company’s loans will be the regulatory factor in whether and to what extent the sale will proceed.
It should be noted that in recent years the food and beverage sector has attracted the interest of Greek and foreign investors with transactions exceeding 0.5 billion euros per year.
In 2022 the total value of the sector’s transactions exceeded €2 billion, mainly due to the acquisition of Chipita by Mondelez and Coca-Cola Bottling Company of Egypt by Coca-Cola HBC Holdings BV.
In 2023, 11 transactions were completed, of which 10 remain of unknown value, with PwC Greece estimating the invested amount to 749 million euros. Among them stood out the acquisition of Brown-Forman Finland by CC Beverages Holdings II BV, a transaction worth 209 million euros.
Record number of acquisitions and mergers in 2023
Based on data from PwC Greece, Greek companies attracted a total of €8.4 billion in capital in 2023, of which €5.9 billion came from acquisitions and mergers, €601 million from corporate bond issues, 345 million euro share capital increases which were covered by strategic investors and 1.6 billion euro proceeds from privatizations (including disinvestments from the HFSF).
The transaction with the highest value was the acquisition of Enel SpA’s subsidiaries in Romania by PPC, amounting to EUR 1.240 million. The main sectoral characteristic was the concentration of the TMT sector (Telecommunications, Media and Technology) and the increase in transactions in Energy and RES.
Another feature of the year is the ongoing investment activity by Private Equity Companies. Specifically, 25% of the total value of the transactions was carried out by Private Equity Companies (1.5 billion euros with 24 transactions involving investments in Greek companies).
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