1. Deals Analysis
April 24, 2020

US consumer industry sees a drop of 11.9% in deal activity in Q1 2020

The US consumer industry saw a drop of 11.9% in overall deal activity during Q1 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 513 deals worth $20.57bn were announced in Q1 2020, compared to the last four-quarter average of 582 deals.

M&A was the leading category in the quarter with 274 deals which accounted for 53.4% of all deals.

In second place was venture financing with 191 deals, followed by private equity with 48 transactions, respectively accounting for 37.2% and 9.4% of overall deal activity in the country’s consumer industry during the quarter.

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In terms of value of deals, M&A was the leading deal category in the US consumer industry with total deals worth $15.68bn, while private equity and venture financing deals totalled $2.49bn and $2.4bn, respectively.

The US consumer industry deals in Q1 2020: Top deals

The top five consumer deals accounted for 54.1% of the overall value during Q1 2020.

The combined value of the top five consumer deals stood at $11.13bn, against the overall value of $20.57bn recorded for the month.

The top five consumer industry deals of Q1 2020 tracked by GlobalData were:

1) Blackstone Real Estate Income Trust and MGM Growth Properties’ $4.6bn asset transaction with MGM Resorts International

2) The $3.85bn acquisition of Rockstar by PepsiCo

3) US Foods Holding’s $970m acquisition of Smart Foodservice Warehouse Stores

4) The $957.82m acquisition of Primo Water by Cott

5) Accel and SoftBank Vision Fund’s private equity deal with goPuff for $750m.

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.