Juli 25, 2019

Industry Insight HORECA – International chains pushing for consolidation

The market for system catering is very dynamic. With strong international chains pushing for consolidation, the conc
entration of brands and companies is increasing. Slowly increasing economic contraction has not impacted the widely varied market, driven largely by the booming outdoor-eating consumer trend. As such, a large number of private equity investors are promoting the attractiveness of the industry – and not only from an M&A perspective.

Market Insights

Latest M&A activities within the industry

Key performance indicators of the peer group
Valuations in recent years have remained at a consistently high level. Despite mediocre average sales growth rates, EBITDA multiples are ranging between 10.5x and 12x without large volatility in values. The peer group’s stock prices have consistently grown since the beginning of 2019 to a level of approximately +10%. The biggest growth opportunities are seen in home delivery and takeaway. Supermarket snacks to go, gas station snacks and coffee bars will also continuously play bigger roles. Major industry challenges are among others: employee procurement and retention, labor costs, as well as the ongoing digitalization process, which challenges existing business models. Also, the market of aggregators is further consolidating, as confirmed by the takeover of German Delivery Hero by Dutch competitor

EV/EBITDA (next 12 months)

Stock price development peer group (HY)

Want to know more?

If you would like to learn more about the valuations and deals of your industry, the transaction mentioned above or generally our way of working, we would certainly be happy to demonstrate our m&a PLUS® principle in a confidential meeting.
Just get in touch and we will share our experience on how to grow businesses with long-lasting partnerships.

With passion for M&A,
Your SAZUN Team