Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Consumer Retail Industry Sector

By Joe Sands | Sep 16, 2019

The report below gives a good overview of the third 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 Q2 2019 included 175 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector closed in June when Euromarket Designs, Inc., trading as Crate & Barrel, a subsidiary of Otto GmbH & Co. KG, ultimately owned by OTTO AG für Beteiligungen, acquired Hudson Grace for an undisclosed amount. The transaction would expand Euromarket Designs’ business portfolio and online presence. Founded in 2012, Hudson Grace is located in California and operates retail showrooms of houseware and furniture.

Industry Indicators

  • Total US consumer spending, an indicator of non-store retail sales rose 1.4%, primarily from services expenditures, in June 2019 compared to the same month in 2018.
  • The average US retail price for diesel and regular gas, which influences discretionary consumer spending on internet and catalog items, fell 6.4% and 7.7%, respectively, in the week ending August 12, 2019, compared to the same week in 2018.
  • US personal income, which drives consumer non-store retail spending, rose 4.9% in June 2019 compared to the same month in 2018.
  • US retail sales for non-store retailers, a measure of demand, increased 11.9% in the first seven months of 2019 compared to the same period in 2018.

Posted by Joe Sands.

Read the Entire Consumer Retail 3rd Quarter Newsletter Here

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