1. Deals Analysis
January 29, 2021

UK retail industry sees a drop of 3.2% in deal activity in Q4 2020

The UK retail industry saw a drop of 3.2% in overall deal activity during Q4 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 $9.76bn were announced in Q4 2020, compared to the last four-quarter average of 31 deals.

M&A was the leading category in the quarter with 16 deals which accounted for 53.3% of all deals.

In second place was venture financing with seven deals, followed by private equity with seven transactions, respectively accounting for 23.3% and 23.3% of overall deal activity in the country’s retail industry during the quarter.

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In terms of value of deals, M&A was the leading deal category in the UK retail industry with total deals worth $9.03bn, while private equity and venture financing deals totalled $453.33m and $275.6m, respectively.

The UK retail industry deals in Q4 2020: Top deals

The top five retail deals accounted for 96.1% of the overall value during Q4 2020.

The combined value of the top five retail deals stood at $9.38bn, against the overall value of $9.76bn recorded for the quarter.

The top five retail industry deals of Q4 2020 tracked by GlobalData were:

1) Mohsin Issa, TDR Capital and Zuber Issa’s $8.77bn private equity deal with Asda Stores

2) The $309.63m venture financing of Cazoo by BlackRock, D1 Capital Partners, DMG ventures, Durable Capital Partners, Fidelity Management & Research, General Catalyst Partners, L Catterton, Mubadala Capital, Novator Partners and The Spruce House Partnership

3) Linnaeus Group’s $133.39m asset transaction with Pets at Home Group

4) The $129.91m private equity deal with C & J Clark International by LionRock Capital(Hong Kong)

5) City Chic Collective’s asset transaction with Arcadia Group and Evans for $31.2m.

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.