Floriculture M&A blossoms as sector recovery takes root

M&A Developments | Floriculture | H1 2025

Dealmaking activity in the horticulture sector continued to gain traction in the first half of 2025, building on the recovery observed in late 2024. We recorded 47 transactions during this period, up from 42 in H2 2024. This sustained growth underlines the resilience of the M&A landscapeAs anticipated, dealmaking activity in the horticulture sector gained momentum in the second half of 2024, reflecting the gradual recovery we expected earlier in the year. We have identified 42 transactions during this period, an increase from the 35 transactions observed in the first half of 2024. Although still below the 49 transactions in the second half of 2023, this growth demonstrates a rebound in M&A activity driven by improving market conditions and renewed strategic interest.

The current M&A landscape reflects a blend of stabilizing and constraining forces. Energy costs have normalized, inflationary pressures have eased across major markets and many companies have showed a normal level of profitability again. However, capex programs have been push forward, there is some uncertainty in the market when it comes to market demand and governmental policies and financing conditions remain tight. Despite these headwinds, strategic buyers remain active, particularly in niche and tech-enabled segments where consolidation opportunities are compelling

We remain cautiously optimistic about horticulture M&A for the remainder of 2025. Continued momentum is expected in high-growth areas such as smart greenhouse technologies and automation. Strong sector fundamentals and ongoing innovation are likely to support healthy activity levels. That said, geopolitical uncertainty, especially around U.S. trade and environmental policy under the Trump administration, could introduce volatility in global cross-border transactions

As momentum in horticulture M&A continues to build, we also saw solid activity in our own practice in the first half of 2025. Ordinary deal flow plus a catch up of processes that were postponed during the energy crisis. We closed 3 horticulture transactions ourselves in first half of 2025, and have 4 additional deals currently pending. The pipeline of potential mandates for the remainder of the year is also strong, and we remain optimistic about the propositions we expect to bring to market. At the same time, we see many companies in the industry that struggle to find a new owner due to misaligned profitability, succession issues, or other challenges. Nevertheless, for good companies there is solid interest Frank de Hek, Oaklins' horticulture specialist

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Frank de Hek Amsterdam, the Netherlands
Managing Partner
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