US consumer industry sees a drop of 34.5% in deal activity in Q2 2020

4 August 2020 (Last Updated August 4th, 2020 15:33)

US consumer industry sees a drop of 34.5% in deal activity in Q2 2020

The US consumer industry saw a drop of 34.5% 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 371 deals worth $15.54bn were announced in Q2 2020, compared to the last four-quarter average of 566 deals.

M&A was the leading category in the quarter with 176 deals which accounted for 47.4% of all deals.

In second place was venture financing with 164 deals, followed by private equity with 31 transactions, respectively accounting for 44.2% and 8.4% of overall deal activity in the country’s consumer industry during the quarter.

In terms of value of deals, M&A was the leading deal category in the US consumer industry with total deals worth $10.69bn, while private equity and venture financing deals totalled $3.36bn and $1.49bn, respectively.

The US consumer industry deals in Q2 2020: Top deals

The top five consumer deals accounted for 63.1% 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 $15.54bn recorded for the month.

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.