Now is the time for acquisitions in the UK food industry

Now is the time for food manufacturers to invest in acquisitions as the industry is awash with cash following many stable years, say UK analysts.

Plimsoll Publishing released its Acquisition Study this week, which looked at the finances 500 food manufacturing companies in the UK, and ascertained the current climate is opening doors to acquisitions within the industry.

These opportunities could lead to the industry becoming saturated with the more successful, larger companies, forcing small- and medium-sized food manufacturers out of the market.

"There is absolute evidence that the rich are getting richer as the gap between those making massive profits and those missing out has widened in the last few years,"said David Pattison, senior acquisition analyst.

"There has never been a better time for these dynamic companies to splash the cash."