Buff Greebe

A transformational acquisition in America. Huge step to remain a benchmark in upcycling—transforming natural waste into higher-quality products with greater ecological and economic value—and above all, to continuously improve our offerings to clients

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#FMCG companies aim to divest their way to growth Divesture value has been exceeding acquisitions value for the world largest #CPG players since 2023, and it is likely to continue considering recent announcements (Unilever Ice Cream) & on-going rumors (Kraft Heinz & Oscar Mayer...) Few reasons for this: 1) Pressure is on to get back to mid-term guidance on top-line which is often hard in a post price increase context (>50% of the top 50 listed FMCG companies missed their topline guidance in Q4 2023) while recovering pre-COVID profitability (at end 2023 >70% failed to do so) 2) Divesture is often the fastest/ easiest way to improve organic growth & profitability footprint especially when companies have a large business with much lower growth, much lower profitability & that comes with limited di-synergies in case of carve-out 3) If leverage level for the top 50 FMCG companies is on average at an acceptable level (x2.7 at end 2023 vs. the generally accepted x3 level), some FMCG companies exceeds the threshold (AB InBev, Kraft Heinz, Nestlé, Mondelēz, General Mills, Danone, HEINEKEN, Asahi, CCEP...) 4) At a time top-line growth is becoming tougher, shares buy-backs are increasingly leveraged to drive EPS growth. So the proceeds of divesture can really help there especially for the companies with the most constrained B/S 5) Finally, high ROI M&A remain scarce because of the rarity of quality (mid-size, same categories than acquirer's, strong growth track record, complementary to acquirer's portfolio, scalable growth model that could benefit from GTM synergies) & well-priced assets PE funds & public markets (thru IPOs) will be most often the exit scenarios for those divestures. If large FMCG carve-out assets can sometimes deliver better results under (partial) private ownership (cf. Froneri), not all end up being a success. So caution prevails Exciting times ahead on divesture and M&A front in the FMCG industry in 2024 To read our full perspective: FMCG CEOs: M&A Q1 2024 In Review - A New Bottom & Four Reinforcing Trends 𝗟𝗶𝗻𝗸 𝘁𝗼 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: https://lnkd.in/efD5RNWX 𝗧𝗼 𝗴𝗲𝘁 𝘁𝗵𝗲 𝗰𝗼𝗿𝗿𝗲𝘀𝗽𝗼𝗻𝗱𝗶𝗻𝗴 𝗱𝗲𝗰𝗸, 𝗽𝗹 𝗹𝗲𝗮𝘃𝗲 𝘆𝗼𝘂𝗿 𝗻𝗮𝗺𝗲 𝗶𝗻 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀/ 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢𝘀 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y #strategy #mergersandacquisitions Frederic Fernandez & Associates

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🚀 🇨🇴 𝐋'𝐎𝐫𝐞𝐚𝐥 𝐭𝐨 𝐌𝐚𝐤𝐞 𝐂𝐨𝐥𝐨𝐦𝐛𝐢𝐚 𝐈𝐭𝐬 𝐆𝐥𝐨𝐛𝐚𝐥 𝐌𝐚𝐤𝐞𝐮𝐩 𝐇𝐮𝐛 L'Oréal Group is setting its sights on #Colombia as its main global makeup manufacturing hub. Currently, one of L'Oréal's five global makeup plants is located in Funza, near Bogotá, 𝐩𝐫𝐨𝐝𝐮𝐜𝐢𝐧𝐠 𝟔𝟓-𝟕𝟎 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐮𝐧𝐢𝐭𝐬 𝐚𝐧𝐧𝐮𝐚𝐥𝐥𝐲 𝐚𝐧𝐝 𝐞𝐱𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐭𝐨 𝟏𝟒 𝐜𝐨𝐮𝐧𝐭𝐫𝐢𝐞𝐬. The company plans to increase production to 102 million units by 2025 and 140 million units within five years, surpassing its other factories in #China, the #US., #Italy, and #Brazil. 🇨🇳 🇺🇸 🇮🇹 🇧🇷 The decision is driven by Colombia's strategic #location, competitive production costs, and the strong performance of the Funza factory, which already produces brands like NYX Professional Makeup, Maybelline New York, and Vogue. Vogue alone represents nearly 40% of L'Oréal's production in Colombia, with 60% of total production exported globally. This expansion will strengthen L'Oréal's presence in the #Andean Region and the #Caribbean, solidifying Colombia's role in the company's global operations. https://lnkd.in/gaiaDsiK #latam #beautyindustry #growth #executivesearch

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