Following a strong COVID-19 recovery in the second half
of 2020 and the first half of 2021, floricultural companies
continue to look for strategic partnerships with higher
intensity than before the pandemic, the Oaklins reports states. In this report, Frank de Hek, Oaklins Horticulture Specialist, maps the developments over the past year.
Underpinning these dynamics, in the Oaklins report, 43 M&A
transactions in the floriculture sector have been identified during the second half of 2021, which is somewhat lower than the 55 and
52 transactions observed during the second half of 2020 and the first half of 2021 respectively. Nevertheless, they perceived considerably more M&A activity in the second half of 2021 in comparison to the years prior to COVID-19.
Like previous years, most transactions took place in the equipment, engineering & services segment, even though the increased commodity prices and logistical issues formed a roadblock for a number of M&A processes.
Looking at the first half year of 2022, they expect M&A activity to remain high due to the underlying consolidation drivers remaining relevant, an abundancy of cash available and strong company performances. With consolidation taking place throughout the sector, companies increasingly acknowledge the advantages of strategic partnerships to secure a leading future market position.