US retail industry sees a drop of 2.5% in deal activity in August 2020

25 September 2020 (Last Updated September 25th, 2020 14:49)

US retail industry sees a drop of 2.5% in deal activity in August 2020

The US retail industry saw a drop of 2.5% in overall deal activity during August 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 39 deals worth $1.11bn were announced in August 2020, compared to the 12-month average of 40 deals.

M&A was the leading category in the month in terms of volume with 23 deals which accounted for 59% of all deals.

In second place was venture financing with 15 deals, followed by private equity with one transactions, respectively accounting for 38.5% and 2.6% of overall deal activity in the country’s retail industry during the month.

In terms of value of deals, M&A was the leading deal category in the US retail industry with total deals worth $776.07m, while private equity deals totalled $331m.

US retail industry deals in August 2020: Top deals

The top five retail industry deals accounted for 89.8% of the overall value during August 2020.

The combined value of the top five retail deals stood at $994.5m, against the overall value of $1.11bn recorded for the month.

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

1) Fidelity Capital Investors, Franklin Templeton Investments, Neuberger Berman and Thrive Capital’s $350m venture financing of Fanatics

2) The $311m acquisition of Hudson Group by Dufry

3) Baillie Gifford &, D1 Capital Partners, Durable Capital Partners and T. Rowe Price Group’s $245m venture financing of JAND

4) The $50m venture financing of Drizly by Avenir Growth Capital and Tiger Global Management

5) NewSpring Capital’s venture financing of Fashionphile for $38.5m.

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.