
Announcements
Vacancies
"Tweeting Growers"
Top 5 - yesterday
- CAN (SK): “The flowers take a long time to start growing but it is worth it because they are so beautiful”
- Plants remove cancer causing toxins from air
- Use of prohydrojasmon to suppress Frankliniella occidentalis and tomato spotted wilt virus in chrysanthemums
- Kuehne+Nagel announces management changes in Middle East and Africa region
- UK: Award-winning Chelsea Flower Show garden to go on display in Hampshire
Top 5 - last week
Top 5 - last month
- Hasfarm’s network expands in Indonesia, partnering with Bromelia Flowers and Tropika
- "Breeders need to study the Chinese market carefully before introducing a variety"
- Royal Flowers merges with The Elite Group
- North America: “Unbridled optimism for Mother’s Day tempered by reality”
- “A new sales channel for flower companies without any labor or high fixed costs”
Valuations show a consistent upward trend
As shown in the above chart, valuations of selected companies have gone up in the past 12 months by 17.0%, partially driven by a fourth consolidation wave in the crop market in which Dow and DuPont, Monsanto and Bayer, ChemChina and Syngenta are merging (pending regulatory approval).
The median enterprise value/EBITDA multiple of the selected peer group is currently 12.7x. The selected peers are typically valued at a higher EBITDA multiple than dedicated horticultural breeding companies, the main reasons being their higher technology standards, large size, stronger distribution power, global reach and product diversification. Oaklins expects well-run platform companies in the horticultural breeding market to reach similar valuations in the near future, with valuations well north of 10x EBITDA.
Maarten Wolleswinkel, Horticulture Specialist, Oaklins: “We see the majority of the horticultural breeding companies being sold valued at EBITDA multiples ranging from 4x for small, focused companies with limited distribution power to 7x for (semi-)global players that are market leaders in a popular variety. The largest players with global activities and a broad product portfolio trend to be valued at multiples closer to those of the companies shown above. The spread between both categories offers opportunity for value creation, another important factor that's driving the current consolidation trend.”
For more information:
Oaklins
Beethovenstraat 500
1082PR AMSTERDAM
The Netherlands
+31 20 416 1303
info@nl.oaklins.com
www.oaklins.com
Publication date:
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Other news in this sector:
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