Agribusiness & Food 4Q 2025 Report

Agribusiness, food, and beverage M&A activity in the fourth quarter was on par with the prior period, with a total of 81 deals announced or closed in segments tracked by FOCUS. Deal volume fell approximately 20% year-over-year, reflecting the dampened deal making environment that marked much of 2025. Higher interest rates and valuation gaps constrained buyers, while weakened sales, global trade policies, and performance uncertainty impacted sellers. Still, the market remained active in Q4 and was shaped by changing consumer behavior and corporate portfolio realignments. Brands catering to consumer demand for health and wellness captured buyer interest, while food and beverage giants divested non-core and underperforming assets.

The past year highlighted challenges rippling across the broader industry. Food and beverage giants are facing sluggish sales amid slowing consumption patterns, and the impact is being felt upstream among select production segments as well (wine growers, in particular). Consumers are increasingly scrutinizing labels and looking for products with natural flavors and functional ingredients. The rise of weight loss drugs like Ozempic have reshaped eating patterns, namely in the form of reducing cravings for sugary and salty foods. And persistent inflation has pushed shoppers to stretch their dollars, giving rise to private label brands and making restaurant visits less frequent.

The same pressures weighing on large food and beverage companies—inflation, input-cost volatility, shifting consumer preferences, and supply-chain complexity—have increased the strategic value of smaller, differentiated brands and platforms, making them attractive M&A targets for both corporate buyers and private equity. Looking ahead, buyers will likely remain selective but strategic, driven by growth scarcity, portfolio repositioning, and the need to swiftly adapt. These dynamics should continue to support buyer interest in high-quality middle market companies.

• The pivot toward health and wellness has made smaller, better-for-you brands and formulators standouts in the M&A market. Hershey acquired LesserEvil, the maker of organic snacks with better-for-you ingredients, for $750 million, while PepsiCo expanded into the wellness beverage market with its $2 billion purchase of Poppi.
• Americans, for better or for worse, have shown a fondness for health crazes (juice detoxes!) and fad diets (no carbs!) under the promise of quick results. But the consumer focus on health and wellness today – nutrient-dense foods, simpler ingredients, greater transparency – is a trend with staying power across categories.

• Global trade changes pushed companies to reassess their supply chain strategies, with many firms making acquisitions to shore up domestic supply chains or reduce exposure to imports.
• Distributors and logistics-focused businesses have stood out as attractive acquisition targets because they offer supply chain stability and tariff resilience. GrubMarket, an active buyer in the distribution segment, acquired Coast Citrus Distributors, a national produce importer and distributor. The deal expands GrubMarket’s sourcing and infrastructure across key U.S. hubs (California, Texas, and Florida). Deal terms were not publicly disclosed however it was noted to be GrubMarket’s largest acquisition to date.

• After building expansive portfolios over the past decade, 2025 saw food and beverage giants offload legacy brands and products. Unilever completed the spin-off of its ice cream business, while both Kraft Heinz and Keurig Dr Pepper announced plans to split into two separate companies.
• The restaurant segment had its own reckoning in 2025, with bankruptcies, store closures, and divestments as companies adjusted to ongoing challenges (cost pressures, uneven consumer demand). Jack in the Box sold Del Taco for $119 million, three years after acquiring the brand for $575 million, in an effort to simplify its business. Hooters filed for bankruptcy, while Denny’s went private in a $620 million deal.

• Large players may opt for build strategies and focus on reformulating classic brands – reducing sugar, removing artificial ingredients, and adding nutrients. Expect to see protein and fiber added across a wide array of products (protein-enhanced popcorn, anyone?)
• Other companies will lean on M&A to enter or expand into high-demand categories, with an eye towards healthy snacks, functional beverages, and better-for-you indulgence. Acquiring smaller, agile operators will enable incumbents to buy growth. Expect margin strength, profitability, and strategic positioning to drive valuation premiums over sheer size or revenue growth alone.

• After recent years of dampened activity, M&A could rebound in 2026, supported by stabilizing input costs and renewed strategic interest (read more about the state of the agribusiness M&A market here).
• Activity is likely to concentrate in segments that offer scale, supply-chain resilience, or productivity gains: crop inputs and ag services; food ingredients and value-added processing; and animal nutrition and feed.

• Restaurant M&A is anticipated to remain active in the coming year, driven by demand from both strategic and financial buyers. Both high-performing concepts and struggling brands, ripe for turnaround, will be on the table.
• Challenger brands, with their simpler concepts and connection with Gen Z customers, are attracting private equity interest (think of Roark Capital’s $1 billion acquisition of Dave’s Hot Chicken). Feeling the heat, legacy restaurant brands may pursue acquisitions to reignite growth and diversify formats. Buyers are more likely to pay up for attractive unit economics, consistent same-store sales growth, and asset-light concepts.