US retail industry sees a drop of 7.5% in deal activity in September 2020

21 October 2020 (Last Updated October 21st, 2020 15:55)

US retail industry sees a drop of 7.5% in deal activity in September 2020

The US retail industry saw a drop of 7.5% in overall deal activity during September 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 37 deals worth $5.13bn were announced in September 2020, compared to the 12-month average of 40 deals.

M&A was the leading category in the month in terms of volume with 26 deals which accounted for 70.3% of all deals.

In second place was venture financing with seven deals, followed by private equity with four transactions, respectively accounting for 18.9% and 10.8% 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 $4.87bn, while private equity and venture financing deals totalled $169m and $85m, respectively.

US retail industry deals in September 2020: Top deals

The top five retail industry deals accounted for 97.03% of the overall value during September 2020.

The combined value of the top five retail deals stood at $4.98bn, against the overall value of $5.13bn recorded for the month.

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

1) Meritage Group’s $3bn acquisition of Les Schwab Tire Centers

2) The $1.75bn asset transaction with JC PenneyInc by Brookfield Property Group and Simon Property Group

3) D1 Capital Partners’ $100m venture financing of GOAT Group

4) The $85m private equity deal with Everlane by L Catterton Management

5) FULLBEAUTY Brands’s asset transaction with Ascena Retail Group for $40.8m.

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.