US retail industry sees a drop of 23.4% in deal activity in December 2019

29 January 2020 (Last Updated January 29th, 2020 14:49)

US retail industry sees a drop of 23.4% in deal activity in December 2019

The US retail industry saw a drop of 23.4% in overall deal activity during December 2019, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 36 deals worth $2.55bn were announced in December 2019, compared to the 12-month average of 47 deals.

M&A was the leading category in the month in terms of volume with 21 deals which accounted for 58.3% of all deals.

In second place was venture financing with 13 deals, followed by private equity with two transactions, respectively accounting for 36.1% and 5.6% 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 $2.19bn, followed by venture financing deals totalled $360.55m.

US retail industry deals in December 2019: Top deals

The top five retail industry deals accounted for 97.4% of the overall value during December 2019.

The combined value of the top five retail deals stood at $2.48bn, against the overall value of $2.55bn recorded for the month.

The top five retail industry deals of December 2019 tracked by GlobalData were:

1) Asbury Automotive Group’s $1bn asset transaction with Park Place Motorcars

2) The $738.27m acquisition of Diplomat Pharmacy by OptumRx

3) Franchise Group’s $450m acquisition of American Freight Group

4) The $254m venture financing of Vroom by Durable Capital Partners, L Catterton and T. Rowe Price Group

5) Alfred Lin’s venture financing of Dolls Kill for $40m.

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.