Dive Brief:
- Snack it Forward, maker of better-for-you snacks, recently announced its acquisition of World Peas, a manufacturer of legume-based savory snacks.
- World Peas produces a line of flavored peas and fava beans that provide a high-protein, high-fiber snack with fewer calories. Snack it Forward will integrate World Peas' products into its portfolio of Sunkist fruit and nut-based snacks.
- The deal creates "a highly innovative, complementary and scalable portfolio," according to a news release.
Dive Insight:
Deals like General Mills' acquisition of EPIC or Snyder's-Lance's acquisition of Diamond Foods keeps the industry buzzing about major manufacturers' M&A moves. But smaller companies also have an opportunity to capitalize on synergies and portfolio expansion from M&A when they have the cash flow and capital to work with.
Much of the consolidation among major manufacturers has already taken place, but middle market companies are primed for acquisition, Anthony Valentino, deputy editor for Mergermarket, told Food Dive last month.
Smaller companies tend to focus on a particular product or product line. But by finding a promising, complementary company in an affordable price range, a smaller company could see increased revenue from a larger portfolio. It can also derive benefits from a target's distribution channels or production technology.