M&A activity in the floriculture sector is expected to flourish in H2 2024
M&A Developments | Floriculture | H1 2024
With the chances of a recession diminishing and energy prices stabilizing, the floriculture sector is gradually recovering from previous macroeconomic uncertainties. However, signs of strong growth remain absent. Consequently, companies remained cautious about engaging in M&A. In the first half of 2024, we have identified 35 transactions, a notable decrease compared to the 49 transactions recorded in the second half of 2023, which was already considered relatively slow.
Furthermore, we have seen that valuations have come down a bit, especially when compared to valuation in other industries.
However, on the back of our own pipeline as well as some other intelligence, we currently see many companies in the industry involved in M&A processes. Some of them not out of luxury (especially in the equipment), but many out of strength. As the consolidations drivers for the floriculture sector remain in force, especially with the technological grade rapidly gaining importance, it is important for market players to stay close to the M&A developments, in order to act swiftly when markets change, or opportunities come by.
After a slow start of 2024, it seems that the second half of this year is going to be exciting when it comes to transaction announcements. Some out of luxury, some forced by the market developments.Frank de Hek, Oaklins' horticulture specialist
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