US retail industry sees a rise of 20.5% in deal activity in December 2020

20 January 2021 (Last Updated January 20th, 2021 04:50)

US retail industry sees a rise of 20.5% in deal activity in December 2020

The US retail industry saw a rise of 20.5% in overall deal activity during December 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 47 deals worth $1.87bn were announced in December 2020, compared to the 12-month average of 39 deals.

M&A was the leading category in the month in terms of volume with 25 deals which accounted for 53.2% of all deals.

In second place was venture financing with 12 deals, followed by private equity with ten transactions, respectively accounting for 25.5% and 21.3% 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 $1.58bn, while private equity and venture financing deals totalled $171m and $119.49m, respectively.

US retail industry deals in December 2020: Top deals

The top five retail industry deals accounted for 89.3% of the overall value during December 2020.

The combined value of the top five retail deals stood at $1.67bn, against the overall value of $1.87bn recorded for the month.

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

1) Mohawk Group Holdings and Truweo’s $556m asset transaction with 9830 Macarthur, Reliance Equities Group and ZN Direct

2) The $350m acquisition of DermStore by The Hut Group

3) JD Sports Fashion’s $325m acquisition of Shoe Palace

4) The $275m acquisition of CarOffer by CarGurus

5) Ares Management, Brigade Capital Management and The Carlyle Group’s private equity deal with Guitar Center for $165m.

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.

 

Visit our ‘Retail Deals Dashboard’ for the latest trends in M&A, PE, and VC activity, top deals and advisory league tables in the retail industry.