US consumer industry sees a drop of 48.9% in deal activity in April 2020

28 May 2020 (Last Updated May 28th, 2020 13:32)

US consumer industry sees a drop of 48.9% in deal activity in April 2020

The US consumer industry saw a drop of 48.9% in overall deal activity during April 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 95 deals worth $3.39bn were announced in April 2020, compared to the 12-month average of 186 deals.

M&A was the leading category in the month in terms of volume with 46 deals which accounted for 48.4% of all deals.

In second place was venture financing with 42 deals, followed by private equity with seven transactions, respectively accounting for 44.2% and 7.4% of overall deal activity in the country’s consumer industry during the month.

In terms of value of deals, M&A was the leading deal category in the US consumer industry with total deals worth $2.53bn, while private equity and venture financing deals totalled $645.8m and $217.52m, respectively.

US consumer industry deals in April 2020: Top deals

The top five consumer industry deals accounted for 88.6% of the overall value during April 2020.

The combined value of the top five consumer deals stood at $3.01bn, against the overall value of $3.39bn recorded for the month.

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

1) Apollo Global Management and Silver Lake Partners’ $1.2bn private equity deal with Expedia Group

2) The $1bn private equity deal with Airbnb by Silver Lake Management and TPG Sixth Street Partners

3) Broadscale Group, Ervington Investments- Cyprus, Exor International, 83North Venture Capital, Hearst Ventures, Macquarie Capital (Europe), Mori Trust, Pitango Growth, Planven Investments, RiverPark Ventures and Shell Ventures’ $400m venture financing of Via Transportation

4) The $250m private equity deal with Covetrus by Clayton, Dubilier & Rice

5) Twin River Worldwide Holdings’ asset transaction with Eldorado Resorts for $155m.

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.