Leveraged Buyouts in the Food and Nutrition Industry: A Literature Review and Restructuring Analysis

Abstract

This paper explores the role of leveraged buyouts (LBOs) in the food and nutrition industry, focusing on literature published until 2021. By reviewing academic research and industry case studies, it highlights the financial and operational restructuring impacts of private equity-led LBOs. A SWOT analysis is developed to evaluate the strategic strengths, weaknesses, opportunities, and threats of LBOs in this sector. Additionally, pre- and post-restructuring comparisons of key companies, such as Kraft Heinz, Atkins Nutritionals, Post Holdings, and Hostess Brands, are presented. Findings suggest that while LBOs drive efficiency and financial performance, they often compromise long-term innovation and sustainability. The paper concludes by emphasizing the need for ESG-oriented approaches to align LBO restructuring with sustainable food and nutrition goals.