The domestic food industry is experiencing a surge in mergers and acquisitions lately, with strategic investors and funds recording significant returns.
For many food businesses, mainly small and medium-sized ones, the current momentum offers the possibility of sustainable continuity in highly uncertain times, while from the perspective of investors, the food sector, in the given context, enhances its attractiveness.
According to executives and market analysts, the upward trend of acquisitions constitutes the only way for weak businesses to survive and at the same time function as the “guide” to the necessary transformation of the domestic production model, which inevitably signals further concentration in the sector.
The domestic food industry has a potential turnover of 17 billion, of which 7 billion concern exports. The majority of acquisitions in the sector concern small and medium-sized companies with revenue potential that hardly exceeds 100 million euros, with the exception of the sale of Chipita and the Vivartia group. In the first month of 2025 the deals in the sector already amounted to four: Kampos Chiou, Semeli Winery, Barba Stathis, Georgoudis Parthenon, while in the two-year period 2023-2024 at least 26 agreements were recorded.
Increase in domestic PE – VCs
Tasos Iosifidis, head of the Financial Advisory, Corporate Strategy and Transactions Department of EY Greece, speaking to “N”, said that “in addition to the increased, compared to the past, activity of large international private equity (PE) funds in a number of sectors in Greece, including the food sector, in recent years we have observed a significant increase in domestic PE and venture capitals (VCs). This is due, among other things, to the available resources from the Recovery Fund and the financing of these funds by the Hellenic Development Bank. In contrast to international funds, which seek big “tickets” and market leaders, local funds “target” mainly dynamic small and medium-sized enterprises. The big difference between PEs and strategic investors is that they do not invest, essentially, in businesses but in entrepreneurs. Specifically, they seek to channel growth capital to young and dynamic entrepreneurs, with the prospect of organic growth, or through mergers and acquisitions.
