InSight

Exit and Growth Strategies for Middle Market Businesses

M&A News In The Consumer Retail Industry Sector

By Joe Sands | Dec 05, 2018

The report below gives a good overview of the fourth 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 Q3 2018 included 107 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in July when Canopy Growth Corp acquired Hiku Brands Co Ltd for CAD546.7 million (US$417.5 million) in stock. The transaction allows Canopy Growth Corp to further strengthen its retail and brand portfolio. Hiku Brands Co. Ltd. operates clothing stores. It focuses on building a portfolio of engaging cannabis brands, unsurpassed retail experiences and handcrafted cannabis production. It also operates a network of retail stores selling coffee, clothing and curated accessories, across British Columbia, Alberta and Ontario.

Although retail store openings continue to grow year over year the openings have not kept up with the store closings.

Industry Indicators

  • Total US consumer spending, an indicator of retail sales, rose 2.2%, primarily from nondurable goods expenditures, in August 2018 compared to the same month in 2017.
  • Total US retail sales, a measure of the retail sector, increased 5.4% in the first nine months of 2018 compared to the same period in 2017.

Posted by Joe Sands.

Read the Entire Consumer Retail 4th Quarter Newsletter Here


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