The poultry sector in the UK is ripe for a series of takeovers and consolidation in the long term as companies with cash reserves look for investments, market analysists at Plimsoll have said in their latest report.
As a result of the current economic climate the report says there are too many companies chasing too little market with many executives looking to leave business and those with cash reserves stuck with money in the bank earning almost nothing.
Report author David Pattison believes up to one in seven companies could be taken over if firms start deploying their cash reserves.
“The UK poultry market is still widely regarded as one of the UK’s most fragmented sectors. In our report we analysed 561 companies with a turnover of over £1m per annum and have picked out 117 that are primed to be taken over,” said Mr Pattison.
“Buying one of these businesses represents a massive opportunity for someone to enhance their share of the market. Either way, the market is set for a wave of takeovers in the next months.”
“One company has a £91m cash pot. These companies are now in the position to buy up large chunks of market share at rock bottom prices and make that money work for them.”