该投资机构认为，BellRing Brands(BRBR.US)、Utz Brands(UTZ.US)、Lamb Weston(LW.US)和Freshpet(FRPT.US)是该行业最有可能的收购目标。过去被猜测的巨额交易包括百事可乐(PEP.US)收购亿滋国际(MDLZ.US)、雀巢收购通用磨坊(GIS.US)以及百事可乐收购达能。For the entire video packaging industry, the potential merger of Mondelez International and Kellanova is believed to trigger another round of consolidation cycle, which may push up the valuation of the entire industry.
According to informed sources, global famous family-style packaged food giant Mondelez International is currently exploring the possibility of acquiring snack brand manufacturers such as Cheez-It and Biscoff owned by Kellanova (K.US). Cowen analyst Robert Moskow believes that Kellanova's many popular snack brands will complement Mondelez's products very well and help Mondelez expand its international market share. As for the entire packaged food industry, potential mergers are believed to trigger another round of consolidation cycle, which may push up the valuation of the entire industry.
Moskow said, "Market leaders in the food industry often pay closer attention to large-scale mergers when economic growth slows down, balance sheets are relatively simple, and valuations decline, in order to drive cost synergies. Looking back at 1999-2001, General Mills acquired Pillsbury, Kraft acquired Nabsico, Kellogg acquired Keebler, and Conagra Brands acquired IHF. However, today many large food companies have trust companies or family members holding large controlling stakes, which poses obstacles to acquirers."
The investment institution believes that BellRing Brands (BRBR.US), Utz Brands (UTZ.US), Lamb Weston (LW.US), and Freshpet (FRPT.US) are the most likely acquisition targets in the industry. Past speculated mega deals include PepsiCo (PEP.US) acquiring Mondelez International (MDLZ.US), Nestle acquiring General Mills (GIS.US), and PepsiCo acquiring Danone.
Packaged food stocks such as Post Holdings (POST), Campbell Soup (CPB), Kellanova (KLG), Flowers Foods (FLO), and General Mills (GIS). J.M. Smucker (SJM) and Hain Celestial (Hain Celestial) outperformed the benchmark in pre-market trading as investors generally shifted to defensive positions amid merger conspiracies.
On Monday, Post Holdings (POST.US), Campbell Soup (CPB.US), Kellogg (KLG.US), Flowers Foods (FLO.US), General Mills (GIS), J.M. Smucker (SJM.US), and Hain Celestial (HAIN.US) all outperformed the benchmark in early trading as expectations of industry mergers and investors' shift to defensive investment boosted related sectors.
On Monday, against the backdrop of widespread market sales, Kellanova's stock price rose 17.42% to $73.95 in early trading. DA Davidson believes that Kellanova's bid could reach as high as $87.
