North America’s consumer industry sees a drop of 34.6% in deal activity in Q2 2020

31 July 2020 (Last Updated July 31st, 2020 18:18)

North America’s consumer industry sees a drop of 34.6% in deal activity in Q2 2020

North America’s consumer industry saw a drop of 34.6% in overall deal activity during Q2 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

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A total of 412 deals worth $15.95bn were announced for the region during Q2 2020, against the last four-quarter average of 630 deals.

Of all the deal types, M&A saw most activity in Q2 2020 with 200, representing a 48.5% share for the region.

In second place was venture financing with 173 deals, followed by private equity deals with 39 transactions, respectively capturing a 42% and 9.5% share of the overall deal activity for the quarter.

In terms of value of deals, private equity was the leading category in North America’s consumer industry with $10.77bn, while M&A and venture financing deals totalled $3.56bn and $1.61bn, respectively.

North America consumer industry deals in Q2 2020: Top deals

The top five consumer deals accounted for 61.5% of the overall value during Q2 2020.

The combined value of the top five consumer deals stood at $9.81bn, against the overall value of $15.95bn recorded for the quarter.

The top five consumer industry deals of Q2 2020 tracked by GlobalData were:

1) KKR &Inc’s $4.3bn private equity deal with Coty

2) The $1.75bn private equity deal with Albertsons Companies by Apollo Global Management

3) Collier Creek Holdings’ $1.56bn acquisition of Utz Quality Foods

4) The $1.2bn private equity deal with Expedia Group by Apollo Global Management and Silver Lake Partners

5) Silver Lake Management and TPG Sixth Street Partners’ private equity deal with Airbnb for $1bn.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.