InSight

Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Consumer/Retail’ Category

M&A News In The Consumer Retail Industry Sector

By Joe Sands | Jun 01, 2018

The report below gives a good overview of the second quarter M&A activity in the Consumer Retail Industry Sector. M&A activity for North American based target companies in the Consumer and Retail sector for Q1 2018 included 149 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when Bodega Latina Corp, majority owned by Grupo Comercial Chedraui SAB de CV, acquired Fiesta Mart LLC, a portfolio company of ACON Investments LLC, for a reported US$300 million. The transaction would expand the company’s operations in Texas and its market position in the US Hispanic population. Fiesta Mart is located in Houston, Texas and operates grocery stores.

As e-commerce sales continue to take market share from traditional brick-and-mortar retailers, the percentage of consumers buying products directly from their mobile devices continues to expand.
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M&A News In The Consumer Retail Industry Sector

By Joe Sands | Mar 26, 2018

The report below gives a good overview of the first quarter M&A activity in the Consumer Retail Industry Sector. M&A activity for North American based target companies in the Consumer Retail sector for Q4 2017 included 94 closed deals, according to data published by industry data tracker FactSet.

One of the notable transactions of the quarter was announced in December when Colgate-Palmolive Co acquired Physicians Care Alliance LLC, trading as PCA Skin, a portfolio company of Norwest Venture Partners for US$730 million in cash. The acquisition would allow Colgate-Palmolive Co to expand its personal care business. The transaction was subject to customary closing conditions, including US antitrust clearance and is expected to accretive the earnings of Colgate-Palmolive Co in 2018.

The old-world retail sector continues to lag as brick-and-mortar stores struggle to compete against Amazon and other e-commerce businesses. This is true for midmarket retailers as well as several major retailers – including RadioShack, PayLess ShoeSource, Vitamin World and Toys R Us, which filed for bankruptcy protection in 2017.

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M&A News In The Consumer and Retail Industry Sector

By Joe Sands | Dec 12, 2017

The report below gives a good overview of the fourth quarter M&A activity in the Consumer and Retail Industry Sector. M&A activity for North American based target companies in the Retail and Consumer sector for Q3 2017 included 93 closed deals, according to data published by industry data tracker FactSet.
E-commerce is continuing to dominate retail and e-commerce solutions have been a big spark for M&A. In September Pitney Bowes, Inc. acquired Newgistics Inc., a portfolio company of Littlejohn & Co LLC, for US$475 million in cash. Newgistics, Inc. provides e-commerce services to retailers. It offers end-to-end e-commerce solutions that integrate every step in the order life cycle from customer acquisition through fulfillment, delivery and returns.

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M&A News In The Consumer And Retail Industry

By Joe Sands | Sep 08, 2017

The report below gives a good overview of the third quarter M&A activity in the Consumer and Retail Industry Sector. M&A activity for North American based target companies in the Consumer and Retail sector for Q2 2017 included 118 closed deals, according to data published by industry data tracker FactSet. The average purchase price was $268 million.

The brick-and-mortar retail sector continues to suffer and shoppers buying habits shift toward online sales.

Retailers who rely on 0% financing deals to encourage big-ticket purchases are facing leaner profits or the possibility of lost sales as interest rates rise, according to The Wall Street Journal. Historically low interest rates since 2009 have enabled US retailers to effectively cover the financing costs for customers by paying a bank or finance company a few percentage points of a product’s purchase price upfront: a practice known as “buying down the rate to zero.” As the US economy improves, the Federal Reserve Bank has begun raising rates, most recently in March 2017.

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