M&A activity in the floriculture sector is picking up again
M&A Developments | Floriculture | H2 2024
As anticipated, dealmaking activity in the horticulture sector gained momentum in the second half of 2024, reflecting the gradual recovery we expected earlier in the year. We have identified 42 transactions during this period, an increase from the 35 transactions observed in the first half of 2024. Although still below the 49 transactions in the second half of 2023, this growth demonstrates a rebound in M&A activity driven by improving market conditions and renewed strategic interest.
Key factors influencing the current M&A environment include lingering uncertainties around energy costs and funding conditions. While recession fears have largely faded and energy prices stabilized earlier in the year, tightening financial markets have continued to make funding for transactions more expensive and selective. Nonetheless, these headwinds have not derailed the upward trend in dealmaking activity across key segments.
Looking ahead to 2025, we remain confident in the continued growth of floriculture M&A, although moderate. Market fundamentals such as consolidation pressures and strong performance in key subsectors underpin a positive outlook. As companies continue to adapt to evolving market conditions, we expect further activity, particularly in high-growth and technology-driven areas. Nonetheless, political developments as a result of the Trump administration could have an adverse effect.
In line with the overall M&A market, 2024 M&A activity in the floriculture market is relatively low compared with the past. Nevertheless, the second half of 2024 showed an increase compared to the first half. This is also in line with our own practice. We closed 7 horticulture M&A transactions in the second half of 2024. When looking ahead to 2025, we are optimistic about our own portfolio of propositions we aim to transact in 2025. At the same time, we see a lot of companies coming to the market for which we expect challenging processes. This also what we have seen in 2024, several companies have put lots of effort in an M&A process but without result.Frank de Hek, Oaklins' horticulture specialist
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