1. Deals Analysis
May 5, 2021

US consumer sees a rise of 8.70% in deal activity in Q1 2021

Led by $6bn private equity deal with Extended Stay America, the US consumer industry saw a rise of 8.70% in overall deal activity during Q1 2021, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 378 deals worth $29.92bn were announced in Q1 2021, compared with the last four-quarter average of 347.75 deals.

M&A was the leading category in the quarter with 179 deals which accounted for 47.4% of all deals.

In second place was venture financing with 147 deals, followed by private equity with 52 transactions, respectively accounting for 38.9% and 13.8% of overall deal activity in the US 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 $14.52bn, while private equity and venture financing deals totalled $13.56bn and $1.84bn respectively.

US consumer industry deals in Q1 2021: Top deals

The top five consumer industry deals accounted for 62.2% of the overall value during Q1 2021.

The combined value of the top five consumer deals stood at $18.62bn, against the overall value of $29.92bn recorded for the quarter.

The top five consumer industry deals of Q1 2021 tracked by GlobalData were:

1) Blackstone Capital Partners and Starwood Capital Group’s $6bn private equity deal with Extended Stay America

2) The $4.3bn private equity deal with Nestle Waters North America by Metropoulos and One Rock Capital Partners

3) Hormel Foods’ $3.35bn asset transaction with The Kraft Heinz

4) The $3.3bn acquisition deal with GE Appliances by AB Electrolux

5) Endeavor’s acquisition of Zuffa for $1.67bn.

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.