Billions flow into food from private investors

EUROPEAN food and drink companies have become targets for private equity and venture capital investment, with the ingredients division of Denmark’s Chr Hansen company the latest acquisition to be snapped up from under the noses of bidders within the industry.

A global food ingredients giant like Danisco and Kerry Group was expected to buy the Danish company. Instead, it went to the PAI private equity firm.

The European food and drink industry is consistently pulling in more private equity funding than all other industries, except for technology, say sources at 3i, a world leader in private equity and venture capital.