UK retail industry sees a drop of 14.3% in deal activity in Q2 2020

24 July 2020 (Last Updated July 24th, 2020 13:39)

UK retail industry sees a drop of 14.3% in deal activity in Q2 2020

The UK retail industry saw a drop of 14.3% in overall deal activity during Q2 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 30 deals worth $533.33m were announced in Q2 2020, compared to the last four-quarter average of 35 deals.

M&A was the leading category in the quarter with 12 deals which accounted for 40% of all deals.

In second place was venture financing with 12 deals, followed by private equity with six transactions, respectively accounting for 40% and 20% of overall deal activity in the country’s retail industry during the quarter.

In terms of value of deals, M&A was the leading deal category in the UK retail industry with total deals worth $483.46m, while private equity and venture financing deals totalled $46.74m and $3.13m, respectively.

The UK retail industry deals in Q2 2020: Top deals

The top five retail deals accounted for 86.05% of the overall value during Q2 2020.

The combined value of the top five retail deals stood at $458.94m, against the overall value of $533.33m recorded for the month.

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

1) Boohoo Group’s $397.77m acquisition of 21 Three ClothingLtd

2) The $30.98m venture financing of Cazoo by DMG ventures, Draper Esprit VCT and General Catalyst Partners

3) Adena Brands’ $19.13m acquisition of Monsoon Accessorize

4) The $6.56m asset transaction with Hilco Capital by Boohoo Group

5) Qingshan Capital Investment’s venture financing of LANDBASE for $4.5m.

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.