1. Deals Analysis
March 31, 2020

US retail industry sees a drop of 10.6% in deal activity in February 2020

The US retail industry saw a drop of 10.6% in overall deal activity during February 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 42 deals worth $931.72m were announced in February 2020, compared to the 12-month average of 47 deals.

M&A was the leading category in the month in terms of volume with 31 deals which accounted for 73.8% of all deals.

In second place was venture financing with eight deals, followed by private equity with three transactions, respectively accounting for 19.05% and 7.1% of overall deal activity in the country’s retail industry during the month.

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In terms of value of deals, M&A was the leading deal category in the US retail industry with total deals worth $903.3m, followed by venture financing deals totalled $28.42m.

US retail industry deals in February 2020: Top deals

The top five retail industry deals accounted for 99.1% of the overall value during February 2020.

The combined value of the top five retail deals stood at $923.3m, against the overall value of $931.72m recorded for the month.

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

1) Berkshire Hathaway’s $549m acquisition of The Kroger

2) The $252m acquisition of Personalizationmall.Com by 1-800-FLOWERS.COM

3) Authentic Brands Group, Brookfield Property Partners and Simon Property Group’s $81m acquisition of Forever 21

4) The $21.3m asset transaction with Pendragon by JBR Automotive

5) ABS Capital Partners, Causeway Media Partners and Jim Lombardi’s venture financing of SquadLocker for $20m.

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.