The number of mergers and acquisitions in the UK food and drink sector took a tumble in 2013.

Deal numbers declined 13% to 76 and the combined value of transactions in the sector fell 4% to £3.4bn, according to corporate finance advisors Oghma Partners.

The drop-off reflects a slowdown in M&A in other industries and comes despite a nascent recovery in the UK economy. Low interest rates were discouraging some companies from putting businesses and brands up for sale, said Oghma.

“Selling a business and banking the cash has become an increasingly unattractive prospect for an owner-operator,” said Mark Lynch, a partner at Oghma Partners.

However, Lynch is optimistic this year will be busier. The share prices of UK food manufacturers have risen sharply over the past year and companies are attracting higher prices at auction.

In 2013, average sold prices for UK food and drink companies exceeded 10x EBITDA for the first time since 2008.

“Higher valuations, rising interest rates and the fear of a post-2015 election increase in capital gains tax might help improve selling activity in 2014,” said Lynch.

He predicted more private equity-owned companies would come to market as higher valuations and the passage of time persuaded funds to part with businesses that, in some cases, had been held for a long time.

Last year, activity dropped off dramatically over the summer. Deal numbers slumped 47% in the second third of the year, but recovered as it drew to a close. In the final third of 2013, 22 deals were completed, compared with 19 the previous year.

Deals in 2013 included Suntory’s £1.35bn purchase of Lucozade and Ribena, the sale of Burton’s Biscuit Company to Ontario Teachers’ Pension Plan and Investcorp’s acquisition of Tyrrells for £100m.

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