This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Takeover Targets: Consumer Stocks in Play

(Takeover Targets: Consumer Stocks in Play report updated with detail about PepsiCo.)
NEW YORK ( TheStreet) -- Corporate dealmaking is staging a comeback in 2011 after hitting a six-year low in 2009, and a roster of consumer stocks represent potentially lucrative targets.

Rumors of Starbucks (SBUX) looking to acquire Peet's Coffee (PEET) may have been laid to rest -- for now -- but overall M&A activity in the U.S. was up 85.1% year-over-year in the first quarter, indicating future acquisitions across the consumer sector are likely on the horizon. Global M&A was up 28.9% in the first three months of this year.

"Leveraged buyouts likely will remain a persistent theme, as private equity and other buyout firms look to put dry powder to use before capital commitments expire," noted Morningstar analyst R. J. Hottovy earlier this year. "We also expect acquisitions to have a global feel in 2011, as domestic firms look to both established and emerging markets for takeover candidates to enhance anemic domestic returns during the last few years."

In March General Mills (GIS) acquired a 51.5% stake in French yogurt maker Yoplait in a deal valued at $1.1 billion. HJ Heinz (HNZ) also looked overseas for growth, announcing it acquired 80% of Brazil's Coniexpress S.A. Industrias Alimenticias, maker of the Quero brand of ketchup and condiments.

Other firms looked to growing niche markets for expansion. Anheuser-Busch InBev (BUD) said last week it would pay a combined $38.8 million to acquire Chicago-based craft brewer Goose Island Beer; and Coca-Cola (KO) exercised its right to acquire the remaining portion of organic bottled tea maker Honest Tea for an undisclosed amount.

"With further stabilization in the credit markets, we also expect a handful of blockbuster strategic acquisitions this year, many of which could change the landscape of their respective industries," Hottovy added.

Here then is a roundup of potential M&A targets in the consumer sector. Read on to see who the prime targets are likely to be ....
1 of 13

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PEP $98.95 0.44%
AAPL $109.49 -1.20%
FB $92.40 0.00%
GOOG $638.31 -0.63%
TSLA $226.00 -2.60%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs